Provision of Sponsor Services under the Listing Rules
In late 2013 Plaza announced a debt restructuring programme and entered into negotiations with its bondholders, with whom it was in technical default.
The Board approached the creditors of the Company with a restructuring plan so 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 enabling 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.
Lead Partner Mark Brady, and Neil Baldwin of SPARK’s Leeds based Financial Advisory team provided Sponsor services financial advisory advice to Plaza:
- 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
- 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.