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Zenith Group Real Estate I AB (PLC) is initiating written proceedings for the purpose of voting on adjustment with respect to calculation of interest on equity loans

02 juli 2018 | Venture Capital

Press release 2 July 2018

The Board of Zenith Group Real Estate AB (PLC), org. no. 559105-6345 (“the Company” or “Zenith”) has reached a decision concerning initiating written proceedings with respect to the Company’s non-underwritten equity loans of up to SEK 500,000,000 with ISIN SE0010636191, which is traded on the Nordic Derivatives Exchange, Debt Securities under the abbreviation ZenithREI-1 (“the Equity Loan”) in accordance with the equity loan conditions dated 20 December 2017 (“the Conditions”).

The company has instructed Quesada Investment Management AB (”Quesada”) to initiate written proceedings for the purpose of formally voting on (i) deferring the commencement date of calculation of the Preferential Interest Rate, as defined in the Conditions, with a view to extending the time period within which the Company can issue Subsequent Equity Loans as defined in the Conditions. Zenith’s depositary only accepts issues of Subsequent Equity Loans with an issue date prior to the start date of the Preferential Interest Rate. Given that the establishment of the fund is to be deferred by approx. six months, the Company proposes that the start date of the Preferential Interest Rate be deferred such that the interest begins to accrue from 30 June 2019. The proposed start date is based upon the Company’s assessment that it will take approx. half a year to issue the necessary equity loans in order to facilitate effective administration of the fund, and that (ii) to correct an error in the Conditions, specifically the deletion of item 16.5(a) concerning certain majority claims for amending the Conditions. The error consists in the fact that such amendments to the Conditions should only be covered by the majority claims in item 16.7. In practice this means that the general principle for amendments to the Conditions is a fifty (50) percent majority and not a sixty-seven (67) percent majority. It should be noted that certain amendments, pursuant to the Conditions, require a larger majority than fifty (50) percent and that no amendments are proposed with respect to this.

Quesada will today initiate the written procedure via the issue of a summons. The summons will be sent to holders of Equity Loans registered in the debt register administered by Euroclear Sweden AB as of 2 July 2018.

For quorum in the Written Procedure it is a requirement that owner of Equity Loans who represent at least fifty (50) percent of Outstanding Equity Loans respond to the request that at least ninety (90) percent of those who respond agree to the amendment.

Quesada, or where applicable the Company, must have received votes via Scrive or by post, courier or email to the address below by at the latest 17:00 (CEST) on 23 July 2018. The outcome of the written proceeding will be publicized via a press release as soon as it has been concluded.

The summons to the written proceeding, including detailed information concerning the proceeding and the content of the conditions for transfer of issues and amendments to the Conditions can be found on the Company’s website (www.zenithgroup.se)

For further information, please contact:

Andreas Bladh, Executive Director and one of the founders of Zenith Group Real Estate I AB (PLC), Telephone: +46 (0)8 55 50 96 20, Email: info@zenithgroup.se

Zenith Group Real Estate I AB (PLC) has a duty to publish this information pursuant to the EU’s Market Abuse Regulation (MAR). The information will be published via the secretariat of the above-named individual’s at 8:00 CET on 2 July 2018.

Zenith Group Real Estate I AB (PLC)
Zenith Group Real Estate I AB (PLC) is an alternative investment fund which invests in various types of property funds.