NORSK T I L L I T S M A N N
NORWEGIAN TRUSTEE
Denne melding til obligasjonseieme er kun utarbeidet på engelsk. For informasjon vennligst kontakt Norsk
Tillitsmann ASA.
To the bondholders in:
ISIN: NO 0010637457 25 per cent Emerging Europe Land Development AS Callable
NO 0010671589 Open Bond Issue 2012/2014
NO 0010683600
Oslo, 21 November 2013
Summons to Bondholders’ Meeting - Change of debtor, restructuring and
refinancing of the Group
1.
INTRODUCTION
Norsk Tillitsmann ASA is appointed as Bond Trustee for the above mentioned Bond
Issue.
Terms defined in the Bond Agreement shall have the same meaning when used herein.
The information in this summons regarding the Issuer and market conditions are
provided by the Issuer, and the Bond Trustee expressly disclaims all liability
whatsoever related to such information.
2.
BACKGROUND INFORMATION
The Issuer is contemplating a restructuring of its business which entails a de-merger
of the Issuer, a transfer of the debtor position under the Bond Issue from the Issuer to
Turn ini AS (the "New Issuer") and a subsequent conversion of the Bond Issue to
preferred shares in the New Issuer.
2.1
Restructuring of the Issuer and change of debitor
Currently the Issuer owns several property projects in Eastern Europe through various
subsidiaries. Of the property projects, only the commercial shopping center TC
Lumini (the "Lumini Project") in Croatia has reached a phase where it has started to
generate a certain cash flow for the Issuer. The remaining property projects (the
"Development Projects") are still in an early development and planning phase.
PO Box 1470 Vika, N-0116 Oslo | Haakon VIIs gate 1, Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 9410 | www.trustee.no
NORSK T I L L I T S M A N N
NORWEGIAN TRUSTEE
Since the Lumini Project is developed into a commercial project with a substantially
different time horizon and focus than the Development Projects, the Issuer
contemplates to separate the Lumini Project from the Development Projects through a
de-merger. The Lumini Project will be de-merged into the New Issuer. After the de­
merger, the Issuer's remaining assets will be the Development Projects, while the New
Issuer will hold all assets and liabilities related to the Lumini Project. By separating
the Lumini Project from the Development Projects, the Group establishes a beneficial
division of the Issuer with respect to timing and focus. The Issuer will then have a
longer time horizon than the New Issuer and will be able to focus on long term
projects. The New Issuer will be able to focus all its energy and efforts on the Lumini
Project and to maximize value and return for the stakeholders in that company.
After the de-merger of the Issuer, the Issuer will not be able to service any debt.
Consequently the restructuring proposal includes a proposal to transfer the debtor
position under the Bond Issue to the New Issuer with subsequent conversion of the
Bond Issue to preferred shares in the New Issuer.
The de-merger will allow the Issuer and the New Issuer to follow separate paths for
developing their respective property projects. Together with the proposed refinancing
it also ensures a solid financial base for both companies.
The completion o f the de-merger is subject to approval of the general meeting of the
Issuer. The general meeting of the Issuer will be held on 5 December 2013 after the
Bondholders' Meeting has been held.
2.2
Conversion of the Second Priority Loan
The Bond Issue amounts to approximately NOK 163 million when accrued interest is
included and matures on 3 March 2014. The Issuer is not capable of repaying the
amount due under the Bond Issue which implies that a refinancing of the loan is
necessary to ensure that the Issuer can continue its business and further development
of the Lumini Project. The grand opening of the Lumini Project is fast approaching
and the Issuer needs to address the maturity and principal of the Bond Issue. The
Issuer has for a long time been in discussions with numerous banks to try and
refinance its existing bond debt but the attempts have been to no avail. Consequently
the need for a refinancing of the Bond Issue is necessary. The Issuer's current debt
burden is too heavy and needs to be managed so that the Issuer is able to operate its
business until and after the grand opening of the Lumini Project.
As a consequence of the above, the Issuer proposes that the Bond Issue together with
accrued interest up until and including 5 December 2013 is converted to preferred
shares (the "Preferred Shares"). The conversion of the Bond Issue will be completed
after the de-merger, meaning that the Preferred Shares will be issued by the New
Issuer.
After issuance of the Preferred Shares has been completed, the share capital of the
New Issuer will consist of 146,073,156 ordinary shares and up to 162,820,736
Preferred Shares. The conversion price for converting Bonds and accrued interest to
Preferred Shares is NOK 1 and the number of Preferred Shares to be issued depend on
whether or not parts of the accrued interest on the Bonds will be paid by the Issuer
PO Box 1470 Vika, N-0116 Oslo j Haakon VIIs gate i, Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 94 10 | www.trustee.no
NORSK T I L L I T S M A N N
NORWEGIAN TRUSTEE
prior to conversion. All shares in the New Issuer will have equal voting rights.
The Preferred Shares will have a preferred right ahead of ordinary shares to
distributions from the New Issuer. Reference is made to the attached draft articles of
association for the New Issuer for the full preferred rights attaching to the Preferred
Shares.
By converting the Bond Issue and accrued interest to preferred shares in the New
Issuer after the de-merger, the Bondholders receive shares in a cash generating
business. Furthermore the New Issuer's debt burden is significantly reduced and the
New Issuer will therefore re-emerge as a healthy company with sustainable debt.
Furthermore the articles of association of the New Issuer will be amended so that
future pledges over the Lumini Project will have to be approved by the general
meeting of the New Issuer.
The Bondholders will as a consequence of the conversion of the Bond Issue and
accrued interest to Preferred Shares release the current security in place for the Bonds.
To compensate the Bondholders for the release of the security related to the Kupinec
project, the Issuer proposes to resolve to issue warrants to the Bondholders which
entitles the Bondholders to subscribe for shares in the Issuer (the "Warrants"). The
value of the Warrants will correspond to thte value of the Kupinec Project. The terms
of the Warrants are set out in the draft resolution attached to this summons.
The conversion of the Bond Issue and accrued interest to Preferred Shares will be
resolved at an extraordinary general meeting in the New Issuer to be held on 5
December 2013 after the Bondholders' Meeting has been held. The extraordinary
general meeting will also resolve the de-merger where the New Issuer is the acquiring
company. The Issuer will hold its extraordinary general meeting to approve the de­
merger and issue of the Warrants at the same time.
2.3
New issue of bonds under the 15 per cent Emerging Europe Land
Development AS Callable Bond Issue 2013/2014 (the "First Priority Bond
Issue")
In addition to proposing a debtor change and subsequent conversion of the Bond
Issue, the Issuer is proposing to raise additional funds of minimum NOK 75 million
and maximum NOK 96 million by issuing new bonds under the First Priority Bond
Issue. Reference is made to a separate summons prepared for the First Priority Bond
Issue for further information.
For more detailed information, please contact:
Eirik Forthun
CEO EELD AS
Telephone: + 47 90639000
Email: ef@eeld.no
Robert Hagen
CFO EELD AS
PO Box 1470 Vika, N-0116 Oslo | Haakon VIIs gate 1 , Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 9410 | www.trustee.no
NORSK T I L L I T S M A N N
N OR WE G IA N TRUSTEE
Telephone: +47 99798833
Email: Robert.Hagen@eeld.no
Christian Meland Bang
Associate at Advokatfirmaet Wiersholm AS
Telephone: +47 92205049
E-mail: cmba@wiersholm.no
3.
THE PROPOSAL
The Issuer requests that the Bondholders consent to (i) the proposed de-merger of the
Issuer, (ii) change of the debtor position under the Bond Issue from the Issuer to the
New Issuer and subsequent conversion of the Bond Issue and accrued interest to the
Preferred Shares, (iii) granting Norsk Tillitsmann ASA a power of attorney to
subscribe for the Preferred Shares and the Warrants on behalf of the Bondholders and
(iv) grant a power of attorney to Norsk Tillitsmann ASA to release the guarantors in
the Bond Issue from their liability as guarantors after the issue of the Preferred Shares
has been carried out.
As part of the transfer of the debtor position under the Bond Issue from the Issuer to
the New Issuer, the Issuer requests that the Bondholders consent to release the Issuer
from any joint and vicarious liability arising under the Bond Issue. Finally the Issuer
requests the Bondholders to consent to the Issuer or the New Issuer being entitled to
repay up to NOK 20 million of accrued interest prior to converting the Bonds to the
Preferred Shares. Such repayment will be carried out pro rata between the Bonds.
4.
USE OF PROCEEDS
The conversion of the Bond Issue to the Preferred Shares does not generate any
proceeds.
5.
NO COMPENSATION
The proposed de-merger of the Issuer and subsequent refinancing will benefit the
Bondholders as well as the Group, and the Issuer is therefore of the view that under
the current circumstances it is not appropriate to offer any remuneration to the
Bondholders. The Bondholders may however receive some payment of interest prior
to the conversion depending on the proceeds from the issue of the new bonds under
the First Priority Bond Issue.
6.
ISSUER'S EVALUATION OF THE PROPOSAL
It is the clear opinion of the Issuer that the proposed conversion of the Bond Issue is
both necessary and beneficial for the Issuer's stakeholders. Together with the proposed
issue of new bonds under the First Priority Bond Issue the Proposal creates a
sustainable solution for the Group's future operation.The conversion of the Bond Issue
is required to transform the New Issuer into a sustainable company as the current debt
burden is not sustainable for the Issuer and will not be sustainable for the New Issuer.
PO Box 1470 Vika, N-0116 Oslo ] Haakon VIIs gate i, Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 9410 | www.trustee.no
NORSK T I L L I T S M A N N
NORWEGIAN TRUSTEE
7.
SUMMONS FOR BONDHOLDERS’ MEETING
In accordance with the relevant provisions under the Bond Agreement, the Issuer has
requested the Bond Trustee to convene a Bondholders' meeting in respect of the Bond
Loan to obtain the necessary consents and approvals to enable the Issuer to complete
and implement the de-merger and to make the relevant changes to the Bond
Agreement subject to the terms and conditions set out in this Summons. All Bonds in
the Bond Issue will vote in the same meeting and the poll will be held as one poll for
all three ISIN numbers.
The request is put forward to the Bondholders without further evaluation or
recommendations from the Bond Trustee. The Bondholders must independently
evaluate whether the proposed changes are acceptable.
Bondholders’ meeting:
Bondholders are hereby summoned to a Bondholders’ meeting:
Time:
Place:
5 December 2013 at 12:00 hours (Oslo time),
The premises of Norsk Tillitsmann ASA,
Haakon VIIs gt 1, 0161 Oslo - 5th floor
Agenda:
1.
2.
3.
4.
Approval of the summons.
Approval of the agenda.
Election of two persons to co-sign the minutes together with the chairman.
Voting over the Proposal:
It is proposed that the Bondholders’ meeting resolve the following:
1.
The Proposal (as defined in the summons to this Bondholders' Meeting) is
approved by the Bondholders' Meeting.
2.
The Bond Trustee is given power of attorney for all matters related to
documenting the decisions made by this Bondholders’ meeting as well as
necessary completion work, including making amendments to the Bond
Agreement.
To approve the above resolution, Bondholders representing at least 2/3 of the Bonds
represented in person or by proxy at the meeting must vote in favour of the resolution.
In order to have a quorum, at least 1/2 of the voting Bonds must be represented at the
meeting. If the proposal is not adopted, the Bond Agreement will remain unchanged.
Please find attached a Bondholder’s Form from the Securities Depository (VPS),
indicating your bondholding at the printing date. The Bondholder’s Form will serve as
proof of ownership of the Bonds and of the voting rights at the bondholders’ meeting.
(If the bonds are held in custody - i.e. the owner is not registered directly in the VPS -
PO Box 1470 Vika, N-0116 Oslo | Haakon VIIs gate i, Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 9410 | www.tmstee.no
NORSK T I L L I T S M A N N
N ORWE GI AN TRUSTEE
the custodian must confirm; (i) the owner of the bonds, (ii) the aggregate nominal
amount of the bonds and (iii) the account number in VPS on which the bonds are
registered.)
The individual bondholder may authorise Norsk Tillitsmann to vote on its behalf, in
which case the Bondholder’s Form also serves as a proxy. A duly signed
Bondholder’s Form, authorising Norsk Tillitsmann to vote, must then be returned to
Norsk Tillitsmann in due time before the meeting is scheduled (by scanned e-mail,
telefax or post - please see the first page of this letter for further details).
In the event that Bonds have been transferred to a new owner after the Bondholder’s
Form was made, the new Bondholder must bring to the Bondholders’ meeting or
enclose with the proxy, as the case may be, evidence which the Bond Trustee accepts
as sufficient proof of the ownership of the Bonds.
For practical purposes, we request those who intend to attend the bondholders’
meeting, either in person or by proxy other than to Norsk Tillitsmann, to notify Norsk
Tillitsmann by telephone or by e-mail (at set out at the first page of this letter) within
16:00 hours (4 pm) (Oslo time) the Banking Day before the meeting takes place.
Yours sincerely
Norsk Tillitsmann ASA
(on behalf of)
Karianne Bruland
Enclosed: Bondholder’s Form
Draft articles of association for Lumini AS (the New Issuer)
Draft resolution for issue of warrants
PO Box 1470 Vika, N-0116 Oslo | Haakon VIIs gate i, Oslo
Switchboard: +47 22 87 94 00 | Fax: +47 22 87 9410 | www.trustee.no
UTKAST
VEDTEKTER FOR LUMINI AS
(Vedtatt [ ], sist endret [
])
§1
Selskapets foretaksnavn er Lumini AS.
§2
Selskapets forretningskontor er i Oslo kommune.
§3
Selskapets virksomhet består i å eie aksjer i selskaper som direkte eller gjennom
eierskap i andre selskaper eier og utvikler eiendomsprosjekter, samt virksomhet som
naturlig hører sammen med dette.
§4
Selskapets aksjekapital er NOK [
] fordelt på [
] preferanseaksjer1 og
146.073.156 ordinære aksjer. Hver aksje er pålydende NOK [0,006]. Aksjene skal være
registrert i et verdipapirregister.
Preferanseaksjene og de ordinære aksjene har like stemmerettigheter i selskapet.
Preferanseaksjene har følgende særrettigheter:
•
Rett til årlig utbytte på 12,5 % av pålydende verdi fra og med den dato hvor
kapitalforhøyelsen i forbindelse med utstedelsen av preferanseaksjene registreres i
Foretaksregisteret. Retten til utbytte forutsetter at lovgivningens vilkår for utdeling
av utbytte er oppfylt og at selskapets likviditetssituasjon, hensyntatt drifts- og
vedlikeholdsutgifter, finansieringskostnader og godkjente investeringer, etter styrets
rimelige skjønn muliggjør utdeling av utbytte. Preferanseaksjene har ikke rett til
utbytte utover dette.
•
Dersom selskapet ikke er i stand til å betale preferanseutbytte (12,5 %) et år
overføres utbytteretten til senere år. Det påløper ikke rente på utsatt
preferanseutbytte.
•
Ordinære aksjer kan bare få utbytte dersom preferanseaksjene har fått utbetalt fullt
utbytte (inkl. akkumulert utbytterett fra tidligere år).
•
Selskapet kan når som helst innløse alle eller noen av preferanseaksjene til en kurs
som tilsvarer tegningskursen for hver aksje pluss eventuelt akkumulert, ikke-utbetalt
utbytte. Ved delvis innløsning skal innløsningen så langt som mulig skje
forholdsmessig. Når generalforsamlingen behandler forslag om innløsning av
preferanseaksjene skal preferanseaksjene være inhabile og skal ikke ha rett til å avgi
stemme eller telle med i representert kapital.
•
Ved salg eller likvidasjon av selskapet skal preferanseaksjene
tegningskursen pluss eventuelt akkumulert, ikke-utbetalt utbytte
aksjene mottar noe. Utover tilbakebetaling av tegningskurs
akkumulert, ikke-utbetalt utbytte skal ikke preferanseaksjene ha
noen utdeling.
ha tilbakebetalt
før de ordinære
pluss eventuelt
rett til å delta i
i
Antall preferanseaksjer avhenger av hvor mye renter som tilbakebetales på andreprioritetslånet før konvertering. Dersom det ikke
tilbakebetales renter før konvertering vil antall preferanseaksjer være det samme som beløpet som konverteres, altså ca. 165
millioner.
1
UTKAST
Med unntak for preferanseaksjenes særrettigheter som beskrevet ovenfor er
preferanseaksjene og de ordinære aksjene likestilte i alle henseender.
§5
Selskapets firma tegnes av to styremedlemmer i fellesskap.
§6
Erverv av aksjer er ikke betinget av selskapets samtykke.
§7
Aksjonærer har ikke forkjøpsrett til aksjer som skifter eier.
§8
Pantsettelse av selskapets faste eiendommer må godkjennes av generalforsamlingen
med flertall som for vedtektsendring.
§9
Dokumenter som skal behandles på generalforsamlingen kan gjøres tilgjengelige på
selskapets internettsider. Det samme gjelder dokumenter som etter lov skal inntas i eller
vedlegges innkallingen til generalforsamlingen. Dersom dokumentene tilgjengliggjøres på
denne måten skal ikke lovens krav om utsendelse til aksjeeierne få anvendelse. En
aksjeeier kan likevel kreve å få tilsendt dokumenter som gjelder saker som skal
behandles på generalforsamlingen.
§10
Selskapet kan bruke elektronisk kommunikasjon når det skal gi meldinger, varsler,
informasjon, dokumenter, underretninger og lignende etter aksjeloven til aksjonærene.
2
UTKAST TIL VEDTAK OM UTSTEDELSE AV TEGNINGSRETTER
Emerging Europe Land Development AS
(i)
Etter aksjeloven § 11-12 utstedes det [xx] frittstående tegningsretter.
(ii)
Tegningsrettene utstedes til Norsk Tillitsmann ASA som tegner tegningsrettene på
vegne av obligasjonseierne i Selskapets obligasjonslån med ISIN NO 0010637457,
NO 0010671589 og NO 0010683600.
(iii)
Hver tegningsrett gir rett til utstedelse av én aksje pålydende NOK [xx] i selskapet.
(iv)
Aksjeeiernes fortrinnsrett etter aksjeloven § 11-13, jf. § 10-4 fravikes.
(v)
Tegningsrettene skal tegnes i et eget tegningsdokument. Fristen for tegning av
tegningsrettene er [31. januar 2014].
(vi)
Det skai ikke ytes vederlag for tegningsrettene.
(vii) Prisen
for aksjene
ved utøvelse
av
tegningsrettene
skal
være
NOK [xx]
[Kommentar: Prisen skal tilsvare aksjenes pålydende etter fisjon],
(viii) Retten til å kreve utstedt aksjer kan først gjøres gjeldende etter 30. april 2018.
Dersom (a) Lumini AS (org. nr. 912 049 442) begjæres konkurs, (b) det i forhold til
Lumini AS erklæres mislighold av gjeld på mer enn NOK 10 millioner eller (c)
kjøpesenteret Lumini selges og salgsprovenyet ikke er tilstrekkelig til å innløse alle
preferanseaksjene i Lumini AS kan tegningsrettene utøves umiddelbart. Den
enkelte tegner kan bare kreve utstedt aksjer for et beløp som tilsvarer det
innehaveren ikke har fått tilbakebetalt på sine preferanseaksjer i Lumini AS på det
tidspunktet kravet fremsettes (herunder akkumulert utbytterett). Krav om
utstedelse av aksjer må fremsettes senest fem år etter generalforsamlingens
beslutning.
(ix)
Det er et vilkår for utøvelse av tegningsretten at innehaveren eier [1,13]
preferanseaksjer i Lumini AS for hver tegningsrett som utøves. Antallet
tegningsretter som kan utøves rundes ned til nærmeste heie tegningsrett. Hvis
retten til utøvelse utløses av delvis innløsning av preferanseaksjene etter pkt. (viii)
(c) er det bare ikke innløste preferanseaksjer som teller med i beregningen av hvor
mange tegningsretter som kan utøves.
(x)
Tegningsrettene kan ikke overdras eller på annen måte gå over til ny eier uten at
de overdras sammen med preferanseaksjer i Lumini AS. Ved forhøyelse eller
nedsettelse av aksjekapitalen, spleis av aksjene, ny beslutning om utstedelse av
tegningsretter eller ved oppløsning, fusjon, fisjon eller omdanning skai
tegningsrettene justeres etter styrets nærmere beslutning i samsvar med
anerkjente prinsipper for slike justeringer.
(xi)
De nye aksjene gir rett til utbytte fra det regnskapsåret de blir utstedt. De nye
aksjene gir forøvrig fulle rettigheter fra det tidspunkt aksjene er registrert i
Verdipapirsentralen.