Tivoli Arendus OÜ, a joint venture of Arco Investeeringute AS (a wholly-held subsidiary of Arco Vara AS), has received a notice of termination of loan agreement from International Invest Project OÜ by which Tivoli Arendus OÜ is requested to settle all its liabilities under the loan agreement, which exceed 8 million euros.
The loan provided by International Invest Project OÜ is secured with a mortgage created on the properties of Tivoli Arendus OÜ and surety guarantees provided by Arco Vara AS and Arco Investeeringute AS.
The group’s surety guarantees to the loan taken by Tivoli Arendus OÜ extend to up to 5.65 million euros. As at 31 December 2012, Arco Vara had recognised a provision for the surety commitments in an amount of 1 million euros.
Tivoli Arendus continues negotiations with International Invest Project OÜ in order to find a mutually satisfying solution.
Tivoli Arendus has also received a notice of termination of loan agreement from AS Swedbank by which Tivoli Arendus is requested to settle all its interest and principal liabilities to the bank, which exceed 160 thousand euros.
Tivoli Arendus OÜ is a project company established for development of a plot of 48,588 square metres at Narva mnt 67 (former address) in Tallinn. The company’s only assets are the registered properties that make up the above plot.
The shareholders of Tivoli Arendus OÜ are, in equal proportions, Arco Investeeringute AS and International Invest Project OÜ.
Egert Paulberg
Financial Controller
Arco Vara AS
Tel: +372 614 4503
egert.paulberg@arcovara.ee