XXI Century Reduces Stake in Hotel Project
OREANDA-NEWS. June 01, 2010. XXI Century (AIM: XXIC LN) reported today in a trading update that it entered into an agreement, with the co-owner of the Luteranska project site, to begin the development of a hotel with serviced apartments located in central Kyiv. The co-owner will provide initial financing of up to ~USD 12 mln to commence construction. In return, XXI Century reduced its effective ownership in the project from 50.5% to 13.4%. According to XXI Century, a major international hotel group has expressed strong interest in managing and operating the hotel as its flagship five star hotel in
Concorde Capital: Our view on XXI Century remains intact: only if the developer secures a strategic investor able to not only invest into its project portfolio development but also repay debts/ or negotiate for a significant haircut, will XXI Century be able to return to a normal operating mode. Otherwise, bankruptcy risk remains imminent.
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