Orco Property Group (OPG) is is planning to buy 108 million shares in Orco Germany to maintain the liquidity of its Polish subsidiary. The €55m transaction will make it possible for the group to pay off Polish lender Pekao for the Złota project in Warsaw. OPG signed the preliminary agreement on the sale of shares this week. The funds will be transferred before the deal is finalized, making it possible for Orco to pay Pekao immediately. Orco said it still needs to meet obligations dictated by the Paris Commercial Court before it will be able to close the deal. The group was given 60 days to return the advance if it won’t be able to finalize the transaction.
“Taking over the liabilities [of the Polish division of Orco] is making it possible for the Złota project to avoid bankruptcy and opens the way for Orco Property Group to move forward with the sale of the project to another developer or investor without any pressure,” Orco said in a statement. “This procedure is a chance for the group to reduce losses resulting from the failure of the project.”
