"In its latest statement Orco has once again denied that it would have liquidity problems. Orco's share price has plummeted by over 80% recently, but the company stressed it would not need another capital increase in the near term.Confronted with the drop in its share price, the group reiterated that “it does not currently need to resort to the financial markets," Orco said in a statement on the website of the Budapest Stock Exchange (BSE).
“The group does not intend to use any of the available step up equity possibilities (PACEO) in the foreseeable future. The disposal program is on schedule. The group therefore confirms its EUR 200 Million asset sales target by year-end," it added.
The group secured the requisite treasury position to reimburse the remaining part of the straight Czech bond that was issued in February 2006 for CZK 1.4 billion. As of 30 September, 78% of the issue has been reimbursed.
“Aside from this bond, there is no corporate covenant linked to agency ratings or to the group's share price that could affect our bond debts or banking debts. There has been no breach of covenant on any of our mortgage financing; nor is any foreseen."
“Our core historic shareholders did not sell any shares and we believe the drop is partly due to massive short selling. The next reimbursement of bonds will take place in 26 months, in November 2010. " said Arnaud Bricout, Vice president of Orco Property Group."
Source: Portfolio Online Financial Journal
18.09.2008