Rivoli asks holders of mortgage-backed notes to consent to standstill

By Angela McDaniels

Tacoma, Wash., June 21 - Rivoli Pan Europe I plc is asking its noteholders to approve a standstill proposal, according to a filing with the London Stock Exchange.

The notes in question are the Dublin-based company's €413 million of class A commercial mortgage-backed floating-rate notes due 2018, €43 million of class B commercial mortgage-backed floating-rate notes due 2018 and €23.75 million of class C commercial mortgage-backed floating-rate notes due 2018.

Noteholders will vote on the standstill proposal at separate meetings in London on July 15.

At least 50.1% of the notes must be represented at a meeting in order to form a quorum. At least 75% of the votes cast at each meeting must be in favor of the proposal in order for it to be passed.

If the proposal is passed, the standstill would begin July 15 and end on Oct. 15.

Background

The proceeds of the notes were used to acquire mortgage instruments issued by Credit Agricole CIB, Sucursal en Espana representing a loan to Parque Principado, SL.

The loan will mature July 15, 2013. The borrower used the loan to partially finance the acquisition of a retail gallery and shopping center.

The company said the standstill would give Parque Principado time to refinance the loan, pursue a sale of the property and formulate any alternative proposal.

Parque Principado has received an offer to buy the property. The offer is subject to due diligence, but the purchaser has indicated a timetable that would allow the sale to be completed within the standstill period.

If the standstill proposal is not approved, when the loan matures, the directors of the borrower will be under a duty under Spanish law to either file for insolvency or a pre-insolvency period of up to four months.

As a result, Parque Principado expects that, if the standstill proposal is not approved by noteholders, the sale of the property will likely occur through a court-approved auction that would take place during an 18-month to two-year period beginning in July, which could adversely affect the timing and value realized from the sale of the property.

© 2015 Prospect News.
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