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Pafos Amathus sold

23/01/2015 09:58
Claridge board of directors accepted a proposal by KA Olympic Lagoon Resort, for the sale of Amathus Beach in Paphos, following the failure of the company's negotiations with its creditors for debt restructuring.

Besides Amathus Beach in Paphos, the sale of two apartments in Apollo Heights was also agreed.

The value of the hotel was agreed at €34,5 m and the two apartments at € 550 thousand.

As stated in the announcement, the Board of Claridge came to a decision to sell the hotel because of the amount of the company's debt, the lack of agreement with its lenders to restructure the company's debt, the failure to provide the total amount needed to finance renovations to convert the hotel in Paphos into Olympic Lagoon Resort, failure to obtain sufficient liquidity to cover the company's liabilities and the significant loss of the issued share capital of the company.

With the sale of the hotel, Claridge will fully repay its debt which amounts to € 32,3 millions and the net balance will be distributed to shareholders. Claridge is negotiating with its lenders for this purpose.

Shareholders of KA Olympic Lagoon are Kanika Hotels with a share of 52% and Amathus with 48%.

The decision of the BoD of Claridge is subject to ratification by the extraordinary general meeting of the Company to be held on February 17, 2015. The proposal of KA Olympic Lagoon will remain in force until February 28, 2015.

It is noted that during the discussion of the proposal by KA Olympic Lagoon, 4 out of 7 members of the BoD of Claridge declared interest in the transaction because of their relationship with Amathus and did not participate in the discussion of the issue nor voted.

After the sale of the hotel, the company's activities are severely limited. Approximately 31% of the capital of Leisure Holdings, owning company of the hotel Amathus Beach Hotel Rhodes and Amathus Elite Suites, remains to the company as well as 100% of the capital of Amathus Vacation Ownership which owns 27 housing units in Apollo Heights at Aphrodite Hills Resort.

Acquiring 48% of KA Olympic Lagoon Resort

Amathus, which is related to Claridge, announced today that it has acquired 48% of the company KA Olympic Lagoon Resort Ltd.

It is noted that Amathus Public Limited currently owns 40.53% of the issued capital of Claridge.

The main shareholder of Amathus is Lanitis Group.

The cost of the company's investment in KA Olympic Lagoon Resort Ltd is expected to reach € 9,84 m. and it will be fully paid in cash.

The investment is expected to have a positive contribution to the liquidity and the financial results of Amathus Group.