Leptos Group – one of Cyprus’ biggest developers – has reached an agreement in principle with one of its lenders to restructure part of a large loan.
The agreement, as recorded in the six-month results of Pandora Investments Public Ltd, concerns arrangements that also include “the repayment of a significant part of the Group’s liabilities through the transfer of property to the financier”.
Pandora Investments’ overall lending to Leptos Group by end of June amounted to €276.5 million, of which €12 million concerned bank overdrafts, €26 million short-term bank lending, €74 million non-current assets and €115 million convertible securities of a subsidiary.
When Bank of Cyprus restructured Leptos Group’s non-performing loans back in 2016, a Pandora subsidiary had issued for the benefit of the lender convertible equity securities with a nominal value of €100 million euros in exchange for the Group’s subsidiaries being exempt from the corresponding debt.
The major restructuring at the time was finalised on December 22, 2015 when Leptos Group (ie Armonia Estates Limited, Pandora Investments Public Limited (“Pandora”), Leptos Calypso Hotels Public Limited and their subsidiaries) entered into a Restructuring Implementation Agreement Agreement –‘RIA’) with the Bank.
The RIA’s provisions came into effect on March 29, 2016 after specific set conditions had been met. According to the RIA, Neapolis Developments Holdings Limited (“NDH”) which owned 100% of Neapolis Developments Holdings Limited (“NDH”) issued convertible debt securities amounting to €100 million in favour of the Bank in exchange for Neapolis Developing Limited’s loan of €100 million which resulted in a profit of €568,960.
The convertible securities were divided into €50,000,000 8.5% non-guaranteed convertible A (‘Original A Notes’) and €50,000,000 8.5% non-guaranteed convertible B (‘Original B Notes’).