OREANDA-NEWS. December 17, 2009. XXI Century (XXIC LN) announced yesterday in a press release that it agreed with Eurobank EFG Bank Ltd to restructure a USD 60 mln loan. XXI Century already repaid USD 4.0 mln in principal in November 2008. According to the terms of the deal, XXI Century will make no further principal payments until June 2010, thereafter it will make monthly repayments until loan maturity in September 2012. The real estate developer will pay monthly interest at 7.2%+LIBOR, with 6%+LIBOR being paid in cash and the remainder paid as a lump sum after the signing of the EFG loan. XXI Century pledged the Kvadrat-Perova and Kvadrat-Simferopol shopping centers holding companies and land plots as collateral. The developer also said it expects to publish its audited annual accounts for 2008 before yearend. Trading in XXI Century shares on the London Stock Exchange was halted in July over its failure to publish the IFRS accounts.

Concorde Capital: With the restructuring of loan from EFG, XXI Century now has only a ~USD 30 mln unrestructured loan from Ukrsibbank out of its total debt burden of USD 260 mln. The developer currently has a standstill agreement signed with Ukrsibbank and is in negotiations on restructuring. While the progress in debt restructuring provides XXI Century with more time to solve its liquidity problems and gives a certain comfort to the company’s minority shareholders, we deem its financial state as still very fragile and do not see how the developer will repay portions of its restructured debt in 2010 and 2011 without a new capital injection from an external investor.