MirLand majority shareholders provide $6 million in advance funding

By Caroline Salls

Pittsburgh, April 21 – MirLand Development Corp. plc received a further $2 million in funding from its majority shareholders, representing the final installment of a $6 million commitment, according to a news release.

The $2 million will be used as additional working capital.

MirLand said the $6 million in funding represents an advance on the planned equity funding commitments of the majority shareholders to the bondholders to support the company’s proposed restructuring.

This advance is unsecured and does not bear any interest, the release said. However, if the restructuring does not proceed, the advance will become interest bearing at a rate to be agreed upon between the company and the majority shareholders.

On April 13, the company announced that it received $4 million of the $6 million commitment from majority shareholders Jerusalem Economic Ltd., Industrial Building Corp. Ltd. and Darban Investments Ltd., who together hold 85.9% of MirLand’s issued share capital.

As previously reported, under the restructuring, $180 million of the debt owed to bondholders will be converted into equity in MirLand, leaving roughly $45 million of outstanding bonds.

The majority shareholders will be asked to commit to providing a total of $25 million in funding in exchange for a 40% interest in the company’s equity.

Of this $25 million, $5 million is to be paid to the bondholders, excluding the majority shareholders and members of the Fishman family.

The bondholders will have a roughly 60% interest in the company’s equity.

MirLand said the remaining debt will remain unsecured and will be restructured through repayment beginning in 2021 with three equal annual installments.

The remaining debt will bear interest at 1%, and interest will be paid beginning in December 2017.

The Cyprus-based real estate developer primarily functions in Russia but also has subsidiaries in Israel and Hungary.

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