The Polish lender BOŚ (Bank Ochrony Środowiska) granted a loan of more than PLN 106m to Rank Progress to make it possible for the retail developer to buy back its series D bonds, worth PLN 102.5m (including interest). The developer has until 2019 to pay off the debt. In an official statement, Rank Progress wrote that the move will help it to diversify its sources of financing, reduce costs and to intensify its investment activity. However, Polish media has been reporting the company faces serious financial obstacles for some time now. One of the conditions of the loan is that Rank Progress not pay any dividends until the loan is paid off.
Another creditor of Rank Progress, Property Lease Fund, began auditing the company today, based on leasing agreements the parties signed two years ago. Rank Progress has 30 days to deliver the necessary paperwork.
