Emerging Europe bondholders vote in favor of additional 15% bonds

By Marisa Wong

Madison, Wis., Dec. 23 - Emerging Europe Land Development AS held meetings on Monday for holders of its 15% callable bonds issue 2013/2014 and holders of its 25% callable open bonds issue 2012/2014.

According to a notice from bond trustee Norsk Tillitsmann ASA, there were sufficient bondholders present to form a quorum at each meeting. The proposed resolution received 93.33% of the votes at the meeting for the 15% bonds and 94.14% of the votes at the meeting for the 25% bonds.

As a result, the agreements for both sets of bonds will be amended as proposed on Dec. 9, the notice said.

In the Dec. 9 meeting summonses, the issuer requested that bondholders consent to an up to NOK 75 million issue of new 15% bonds to finance its Lumini Project and for general corporate purposes.

Specifically, the issuer wanted holders of the 15% bonds to consent to extending the maturity date to April 3, 2017, converting the bond issue to an open bond so that additional tranches of up to NOK 75 million can be issued and including a change-of-control clause.

The issuer wanted holders of the 25% bonds to approve the new issuance so that the security interest for the 25% bonds, which are the company's second priority bonds, will have priority behind the 15% bonds, which are the first priority bonds, up to a maximum loan amount of NOK 105 million (including the NOK 30 million current loan amount of the 15% bonds).

Each meeting required half of the voting bonds to be represented in order to form a quorum and at least two-thirds of the bonds represented voting in favor of the proposals in order for them to be adopted.

According to previous announcements, the company also sought bondholder approval to amend the 15% bonds and 25% bonds at meetings held on Dec. 5. Bondholders voted in favor of pushing out the maturity of the 15% bonds to April 1, 2017 and cutting interest to 12.5% as well as converting the 25% bonds to preferred shares as part of the group's refinancing.

Emerging Europe is a property investment and real estate management services company based in Oslo.

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