Ruric administrator presents preliminary reorganization plan

By Caroline Salls

Pittsburgh, Nov. 30 - Russian Real Estate Investment Co. AB (Ruric)'s City Court of Stockholm-appointed administrator has presented a preliminary reorganization plan for the company, according to a news release.

According to the release, the court will base its decision on whether to continue the reorganization or not on the administrator's plan.

If the court decides to continue the reorganization, which the administrator recommended, the details will be worked out promptly.

The release said the proposal gives Russian Real Estate's creditors a new secured bond corresponding to a larger part of their claim, with the remainder to be converted into shares.

An arrangement, followed by cash payment, could also be offered under the plan.

In order to finance the arrangement and the operations, as well as to give the company's current shareholder the possibility to defend its share, a rights issue would also be proposed.

Ruric acquires, develops, manages and divests real estate assets in the Russian property market and in St. Petersburg in particular. The company is based in Stockholm.

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