Plaza Centers N.V. Further re agreement to sell Bangalore project (9648N)
27 September 2019 - 8:02PM
UK Regulatory
TIDMPLAZ
RNS Number : 9648N
Plaza Centers N.V.
27 September 2019
September 27,2019
PLAZA CENTERS N.V.
UPDATE REGARDING THE AGREEMENT TO SELL ITS HOLDINGS
IN THE PROJECT IN BANGALORE, INDIA
Plaza Centers N.V. ("Plaza" or the "Company") announced today,
further to its press release dated July 25, 2019 and August 30,
2019 regarding results for the six months ended June 30, 2019, that
the SPV which holds the site in Bangalore, India (the "Plot"), has
initiated insolvency proceedings against the Purchaser of the Plot
for recovery of EUR45.4 million (INR 356 crores) due under the
Agreement (as defined below) upon default to EPI.
As previously disclosed, there is no clarity on payment of the
remaining amount under the agreement (the "Agreement") signed by
Elbit Plaza India Real Estate Holdings Limited (a subsidiary held
by the Company (50%) and Elbit Imaging ltd. (50%)) ("EPI"), for the
sale of a 100% interest in the SPV which holds the Plot to the
Purchaser, and all necessary legal steps in order to protect its
interests have been taken, including legal proceedings for dishonor
of the cheques which were given as security for payment of certain
installments.
As previously disclosed, Purchaser was required to pay INR 356
crores to EPI in tranches. However, as of the date hereof, the
Purchaser paid to EPI approximately EUR11.2 million (INR 87 crores)
(Plaza part approximately EUR5.6 million), which EPI is entitled to
forfeit if the Purchaser does not close the transaction as per the
Agreement. Further, the Purchaser has mortgaged approximately 8.7
acres of plots as security for completion of the transaction.
The Company will continue to take all measures warranted in the
circumstances to protect its interest and will update regarding any
new development.
Ends
For further details, please contact:
Plaza
Avi Hakhamov, Executive Director +36 1 6104523
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is listed on the Main
Board of the London Stock Exchange, as of 19 October 2007, on the
Warsaw Stock Exchange (LSE: "PLAZ", WSE: "PLZ/PLAZACNTR") and, on
the Tel Aviv Stock Exchange. Plaza Centers has been active in real
estate development in emerging markets for over 23 years.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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