On 23 July 2013, the Management Board of Sava d.d. has efficiently finalised the process of concluding the so-called Master Restructuring Agreement with the organiser, the agent and the collateral agent of the bank consortium (Nova Ljubljanska Banka d.d.), and other lending banks. The subject matter of the Agreement shall be restructuring of current credit obligations of Sava d.d. until December 2014.
By signing this Agreement, the lending banks enabled Sava d.d. to defer payment of principal amounts under the current loans. Sava d.d. has undertaken to regularly pay the part of the accrued interest at the agreed interest rate, whereas the remaining part of deferred interest will fall due at the end of the contractual period. By signing the Master Restructuring Agreement, the Management Board of Sava d.d. also made a commitment to consistently implement the envisaged strategy that aims at divesting the company's financial assets, cost reduction and business performance improvement.
The restructuring offinancial liabilitiesmaturity forms a part of the Business-Financial Restructuring Strategy of Sava d.d. until the end of 2014 as adopted in September 2011, and represents one of the crucialfactors for its success. The Agreement is a notable achievement for the Management Board of Sava d.d. as it provides a platform for financial stability of the company and enables further strategic shifts towards reducing indebtedness, renewing profitability and generating long-term value for the shareholders of Sava.
The Loan Restructuring Agreement with the lending banks has recently been signed also by the subsidiary Sava Turizem d.d. By signing the Agreement, Sava Turizem d.d. has agreed to settle the current obligation under the loan in instalments. The Loan Restructuring Agreement was made for the period of 5 years (60 months).
In May, Sava d.d., being one of the creditor companies, also participated in signing the Restructuring Agreement and Partial Conversion of Loans into the Capital of NFD Holding which has already been endorsed by the company’s General Meeting held in June.