Plaza N.V.
Sponsor Services for Plaza Centers

Provision of Sponsor Services under the Listing Rules

Client

Plaza Centers N.V.

Plaza Centers N.V. is a Netherland incorporated company which develops, markets, manages, lets and sells shopping centres, and has been active in the real estate development market, in particular shopping centres, in emerging markets predominantly in Central and Eastern Europe.
The Company has dual listings on the Premium segment of Main Market in London, and the Warsaw Stock Exchange. Its major and controlling shareholder is a publicly quoted Israeli company whose shares are traded on both the Tel Aviv Stock Exchange and NASDAQ Global Market in the United States.
The Company operates in nine countries (Romania, Poland, Latvia, Hungary, the Czech Republic, Serbia, Bulgaria, Greece and India) with an asset portfolio running into hundreds of millions of pounds.

Transaction

In late 2013 Plaza announced a debt restructuring programme and entered into negotiations with its bondholders, with whom is was in technical default. The Board approached the creditors of the Company with a restructuring plan so that a formalised restructuring process could be implemented.

Plaza filed for reorganisation proceedings with the District Court of Amsterdam in the Netherlands and submitted a restructuring plan to enable it to restructure its debt and resolve its immediate liquidity situation. This was to be achieved through a deferral of principal payment obligations to creditors, adjustment to interest payments; early repayment of the bonds upon the realisation or refinancing of assets along with allocation to the representatives of the non-collateral backed debt options of 9.99% of the Company’s shares and a potential rights issue of €20 million to shareholders.

Why SPARK

Lead Partner Mark Brady, and Neil Baldwin of SPARK’s Leeds based Financial Advisory team provided Sponsor services financial advisory advice to Plaza. SPARK acted as Sponsor to Plaza in relation to the passporting of its Prospectus prepared under Dutch Law in line with the UKLA’s Listing Rules, and the preparation of a Circular underpinning the rights issue attached to the restructuring with attendant actions.

Outcome

Plaza successfully obtained shareholders approval for the restructuring proposals, and succeeded in raising €20m in its rights issue. It has since managed to dispose of various property assets to repay Bond principal in line with its proposals.