Bank of Cyprus announced that it has reached an agreement Armonia Estates, Pandora Investments, Leptos Calypso Hotels and other Leptos Group subsidiaries for the restructuring of loans worth some EUR 100 mln.
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The agreement include the restructuring of the terms of the loans of the Leptos Group through the extension of their maturities, the strengthening of their underlying collateral, as well as a modest release of certain security,
Some EUR 100 mln of existing loans of various companies of the Leptos Group with Bank of Cyprus are converted into EUR 100 mln worth of long-term convertible Loan Notes issued by the Neapolis Smart Eco City holding company, with Bank of Cyprus being the Noteholder,
A corporate and financial reorganisation of the Leptos Group wil get underway that aims to maximise its operational capabilities, effect the agreement and enhance the financial strength of various entities within the Group.
The reorganisation also includes the acquisition by Pandora of equity in two land-owning subsidiaries of Calypso for a consideration of EUR 30 mln in the form of Pandora assuming an equal amount of loans of Calypso with Bank of Cyprus, as well as the streamlining of the ownership structure of certain joint ventures owned by Armonia and Pandora through the exchange of ownership stakes between them.
“The success of the Leptos Group, one of our largest clients, is important for us and through this agreement the bank demonstrates its willingness to continue to provide its support,” said CEO John Hourican.
He added that “the Leptos Group has demonstrated its agility, resilience and value creation during its long history and especially in the recent challenging years and we look forward to a closer, value creating collaboration with the goal of capturing the upside potential arising from the Cyprus economy gaining further strength in 2016 and beyond.”
On his part, Leptos Group Executive Chairman Michael Leptos said, “Bank of Cyprus has been a strong supporter of the Leptos Group since its very beginning and has contributed to its evolution into one of the largest organisations in Cyprus. This agreement demonstrates our joint willingness and commitment for the continuation and enhancement of this business relationship, with benefits for both parties and the overall Cyprus economy for many more years to come.”
