Hotel San Antonio said today that it is collaborating with its bankers to secure the required financing to cover redemptions of its 7.5% bonds on May 30, 2012 and its proposals have received favourable consideration.
In a statement, the company said that as at the date of the audited financial statements for the year ended December 31, 2009, it had not set up a Capital Reserve Fund to cover the redemption of its 7.5% bonds on May 30, 2012.
This had occurred as the company did not generate available free cash flows as defined by the Offering Memorandum of April 17.
"The company wishes to underline that the bonds with a nominal value of €5,823,433 have been issued in its own name and that the company's net assets gross of the bonds in issue as per audited financial statements stand at €13,571,650, thus substantially in excess of the value of the bonds," the hotel said.
"The company is collaborating with its bankers to secure the required financing to cover redemptions on the redemption date and in this respect the company's proposals are receiving favourable consideration by its bankers," the company said.
It said it expects to conclude these negotiations in the coming days.