This article is from the Australian Property Journal archive
THE APN European Retail Property Group has secured a short term extension from the Royal Bank of Scotland, which will give the trust enough time to formulate a debt restructure and asset sale program.
AEZ’s working capital facility was due to expire on 19 November 2010 and has been extended until 17 December 2010.
During this period, APN Property Group said it proposes to work with RBS to agree an AEZ debt restructure and asset sale program including a possible further extension of this facility of up to three years.
APN said an orderly asset sale program is likely to provide the best outcome for investors.
It is anticipated that any asset sale program would include a business plan for the sale of the AEZ property portfolio over a period of up to three years, changes to the terms of AEZ’s debt facilities with RBS and a plan to repay AEZ’s debt.
Any debt restructure or further extension of the working capital facility remains subject to various conditions and negotiations, due diligence, contract and approval by RBS and APN.
APN said AEZ continues to have the support of RBS, its principal lender, however RBS continues to reserve its rights under the working capital facility and has not committed to any extension beyond the short term extension.
Australian Property Journal
