During the last week Storm Real Estate and QVT has, in the news paper Dagens Industri, communicated their dismay with the composition proposal that Ruric has presented and which has been supported by the administrator, Roland Sundqvist, appointed by the district court of Stockholm. Storm Real Estate and QVT were the only creditors who actively opposed a reorganization of Ruric and recommended bankruptcy. - These players are not representative for the creditors, but rather seem to act in their own special interest, that hardly benefits the common creditor's interest. We are no longer in a situation for negotiation. If the main features of composition is not accepted in, bankruptcy would be the natural effect, says Roland Sundqvist and continues: - A prerequisite for the composition proposal is that the company is able to finance it. In this respect it is necessary to find a balance between the terms in the composition and the financing that both stakeholders can accept. The presented composition proposal has been prepared to meet that balance. To meet QVT's demand for substantially changed terms for the proposed bond and debt /equity swap will jeopardize Ruric's ability to carry out the necessary share issue. Certain proposed changes, such as in the collateral structure for the new bond, will be done. This, QVT has been aware of, but has pretended not to. Storm's offer to buy the cash generating properties does not fit in the strategy going forward. A united creditors committee opposed that proposal. - More than 50 creditors have accepted the composition proposal and a large majority has chosen to swap the claim to new financial instruments according to Alternative no 1 in the composition proposal. Creditors who this far have accepted the composition proposal are in possession of more than 50 % of the total claim. My assessment is that we will reach required acceptance for the composition to be adopted, Roland Sundqvist concludes. Russian Real Estate Investment Company AB (publ) For further information Roland Sundqvist, attorney/administrator, G Grönberg Advokatbyrå, phone +46 8 614 49 64, e-mail: roland.sundqvist@gronberg.se <mailto:roland.sundqvist@gronberg.se> Craig Anderson, CEO Phone +7 812 703 35 50 (St. Petersburg) Phone +46 8 509 00 100 (Stockholm) e-mail craig@ruric.com <mailto:craig@ruric.com> ABOUT RURIC Ruric's business concept is to acquire, develop, manage, lease out and divest real estate assets in St. Petersburg, Russia, offering top-quality commercial premises in the best locations, thus contributing to the successful business performance of its tenants. The company's vision is to become a leading real estate company in central St. Petersburg. The company's strategy is to identify high-potential real estate in the city centre of St. Petersburg, structure appropriate deals and acquire at best price. After renovation top-notch commercial space is offered to tenants seeking the best possible premises and that are willing to pay for such premises. Ruric's Certified Advisor on First North is Erik Penser Bankaktiebolag [HUG#1387773]
Creditors with special interests oppose the reorganization of Ruric -comments from the administrator
| Source: Russian Real Estate Inv. Company AB
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