Update on Novera

RNS Number : 3709J

Equest Investments Balkans Ltd

02 December 2008

 



Equest Investments Balkans Limited
('EIB' or the 'Company')

AMENDMENT TO TERMS OF NOVERA DEBT FACILITIES
 AND UPDATE ON NOVERA OPERATIONS

Equest Investments Balkans, the specialist investment company focused on retail and financial services, infrastructure and property development in South Eastern Europe, is pleased to announce that it has signed amended terms with the senior and mezzanine debt providers for Novera, EIB's waste management operation. Total senior and mezzanine debt in Novera amounts currently to EUR 34 million.

Under the new terms, Novera, inter alia, will benefit from a deferment of its senior and mezzanine debt interest and amortisation payments until 31 December 2009. 

Additionally EIB has agreed to guarantee, on behalf of Novera, any outstanding balances under the senior debt facility which has been provided by Investkredit Bank (Austria). The outstanding balance currently amounts to EUR 12.5 million.

Separately Novera has engaged in discussions with the Municipality of Sofia in order to seek inflation adjustments for its services including waste collection, snow cleaning and street sweeping. Novera has not received inflation adjustments on its pricing since 2004, since which time benchmark inflation in Bulgaria has increased by some 37%.

Commenting, Petri Karjalainen, Executive Director to the Company, said:

'We remain fully committed to ensuring that Novera is able to continue providing its services, as demonstrated by our guarantee over part of the senior debt facilities. We are pleased to have a standstill agreement until 31 December 2009 with the debt providers for Novera, during which time we are looking to improve the performance of the company as well as agree on inflation adjustments with the Sofia Municipality for Novera's services. We are in active negotiations with the Municipality on these inflation adjustments which are needed in order to continue providing and improving the waste collection services to the city.'

                                                                             -ENDS-

For further information, please contact:

Equest Investments Balkans Limited

+ 44 20 7240 7600

Petri Karjalainen

Naomi Kora

Collins Stewart Europe Limited (NOMAD)

+ 44 20 7523 8350

Hugh Field

KBC Peel Hunt Ltd

+ 44 20 7418 8900

Capel Irwin

Financial Dynamics

+ 44 20 7831 3113

Nick Henderson

David Cranmer

 

END

 

 

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