May 7, 2018 / 4:06 PM / 5 months ago

BRIEF- GetBack Files Restructuring Proposals

May 7 (Reuters) - GETBACK SA:

* IN A MOTION FOR OPENING ACCELERATED ARRANGEMENT PROCEEDINGS SAYS THAT ITS LIABILITIES AMOUNT TO 2.82 BILLION ZLOTYS, THE LIABILITIES UNDER THE ARRANGEMENT AMOUNT TO 2.72 BILLION ZLOTYS

* AS OF APRIL 25 TOTAL NOMINAL VALUE OF UNREDEEMED BONDS AMOUNTED TO 88.26 MILLION ZLOTYS, UNPAID INTEREST AMOUNTED TO 3.32 MILLION ZLOTYS

* UNDER RESTRUCTURING PROCEEDINGS COMPANY PLANS TO PREPARE NEW BUSINESS STRATEGY, WHICH ASSUMES LIMITING ACQUISITION ACTIVITIES, REDUCING OPERATING COSTS AND CHANGE OF INTERNAL CONTROL PROCESSES

* COMPANY ALSO PLANS TO PREPARE NEW FINANCIAL STRATEGY

* UNDER NEW STRATEGIES COMPANY WILL LOWER ITS OPERATING COSTS TO 132.9 MILLION ZLOTYS AND RECOVER FUNDS FROM EXISTING DEBT PORTFOLIOS FROM MAY 2018 (3 BILLION ZLOTYS WILL BE RECOVERED FROM COMPANY’S OWN INVESTMENT FUNDS AND 1.1 BILLION ZLOTYS WILL BE RECOVERED FROM EXTERNAL FUNDS)

* FIRST GROUP OF CREDITORS, BONDHOLDERS, WILL BE PAID IN 65.36%, REMAINING 34.64% OF DEBT WILL BE CONVERTED INTO NEWLY ISSUED SHARES

* PROPOSES TO REPAY THE DEBT TO THE FIRST GROUP OF CREDITORS IN INSTALLMENTS BETWEEN 2018-2025, WITH BIGGEST CHUNK TO BE REPAID IN 2019 AND 2020 (23.97% AND 30.57%, RESPECTIVELY)

* PLANS TO INCREASE COMPANY’S SHARE CAPITAL BY 4.1 MILLION ZLOTYS THROUGH ISSUANCE OF 82,399,394 SERIES F SHARES AT ISSUE PRICE OF 8.63 ZLOTYS PER SHARE

* TOTAL ISSUE PRICE OF SERIES F SHARES TO REACH NOT LESS THAN ABOUT 711.1 MILLION ZLOTYS

* SECOND GROUP OF PUBLIC-LAW CREDITORS WILL BE SATISFIED IN FULL AND PAID BY END-2018, THIRD GROUP OF CREDITORS WILL BE PAID IN 65.36% BY 2025

* UNDER GETBACK’S PROPOSAL INTEREST ON BONDS AND LOANS IS TO BE RETIRED

* COMPANY ESTIMATES THAT IN THE COURSE OF THE ARRANGEMENT PROCEEDINGS CREDITORS’ CLAIMS WILL BE SATISFIED IN LEVEL NOT EXCEEDING 25%

Source text: bit.ly/2K0UVmi

Further company coverage: (Gdynia Newsroom)

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