3rd May 2016 06:43
LONDON (Alliance News) - AFI Development PLC said Tuesday it was in talks with Bank VTB PJSC regarding the potential early repayments of loans by two of its subsidiaries, after having received a letter earlier this year from the bank saying it had reached a conclusion the subsidiaries could not meet their obligations under the loan facility agreements on time.
The real estate company, which develops property in Russia, said on March 30 its operating subsidiary AFI RUSS LLC received a letter from VTB, which is involved in loan agreements with two of AFI Development's subsidiaries, Bellgate Construction Ltd and Krown Investments LLC.
According to the letter, the bank had reached the conclusion that the two subsidiaries had experienced "material adverse changes in their financial conditions and there had appeared other circumstances that indicate that their obligations under the loan facility agreements could be not met on time".
AFI Development had said the bank proposed that it "implement steps aimed at removing possible negative consequences of the aforesaid circumstances, no later than 30 calendar days from today", or the bank may exercise its right to claim early repayment of the loans.
In an update on Tuesday, AFI Development said discussions were ongoing with the bank and further announcement will be made as and when appropriate.
By Hannah Boland; [email protected]; @Hannaheboland
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