XXI Century Announced Sale of Its Stakes in Four Projects
OREANDA-NEWS. On 10 June 2009 XXI Century Investments Public Limited (LSE: XXIC) announced the sale of its stakes in four projects. The Company intends to use the proceeds to continue to finance land lease payments on real estate assets and to maintain its operational liquidity.
XXI Century announces the sale of its 51% share in Sevastopol serviced apartments project in Crimea to a local developer that holds the remaining 49% in the project for a total consideration of USD0.5 million and UAH4 million (approximately USD0.52 million at the current UAH/USD exchange rate).
The Company had started construction of this project in early 2008 however stopped the works in 4Q
XXI Century also announces the disposal of the remaining
As was announced in the Company's trading update of 30 March 2009, XXI Century had sold the first portion (
The Company has also sold 100% of the shopping centre project Kvdarat Donetsk-Mira in
The proceeds from the aforementioned transactions have been received. The Company continues to negotiate the sale of selected non-core assets to maintain its operational liquidity.
In view of ongoing adverse market conditions, the Company is at a substantial risk that it may not be able to meet certain significant debt-related commitments, unless it succeeds in restructuring such payments as they become due. Of most pressing concern is the fact that as at the date of this announcement holders of of USD150.31 m in principal amount of the 2010 Notes have chosen to exercise their option to require the Company to redeem their notes on 8 July 2009. Other substantial payments include an USD8.75 million interest payment on the 2010 Notes, which is also due on 8 July 2009.
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