Project update

Update from the originator: 

"Good morning,

An interim procedure is underway between the company SORAC, a subsidiary of ALTAREA, and the operator in order to recover the lease. The court's final decision is expected to be delivered on June 6, 2024.

From this date, two options are available to the operator. If the lease is recovered, it will be resold to a Group that wishes to buy the entire Tribeca restaurant network and the proceeds from the sale will settle the loan. If the lease is not recovered, the operator recovers its security deposit which will make it possible to regularize the deadline of November 2023. For the balance, payment will be made following obtaining compensation within the framework of a summons for damages against the company SORAC or against its own funds thanks to the real estate restructuring underway in the Group.

We will come back to you at the beginning of June when the interim judgment has been rendered.

Best regards,

L’Equipe Raizers."

Update from the originator: 

The operator contacted the originator to obtain an extension of the deadline.

In fact, the latter plans to repay the loan via the sale of its restaurant network.

The extension conditions are being negotiated with the originators legal department.

However, the interest rate will be increased when the delay period which is currently estimated at 6 months.

Update from the originator: 

The borrower sent the originator the following elements. 
In addition, at the end of its communication, the operator announces that it hopes to settle the Raizers loan during Q4 2023. 

"INFO MEMO

TRIBECA MONTPARNASSE

UP DATE WORKS

The Paris Montparnasse site was previously occupied by a service station and car repair activity.

To convert this site into a place of food consumption, the lessor -SORAC – ALTAREA Group, carried out major demolition work and then depollution work on the site. This work lasted 8 months

Once these stages have been reached, the lessor must prepare the cell for delivery to the Lessee, involving

the realization of thick slabs (80 cm)
the drilling of slabs for the installation of stairwells and elevator shafts
renovation of facades
the installation of the openings
All of this work also lasted more than 10 months, and this phase was impacted by periods of health restrictions, then by the consequences of COVID on the supply chains, causing significant delays in the schedule of operations.

In addition to these logistical issues, the lessor was also faced with administrative disputes with the Paris City Hall. In total, the project was delivered nearly 20 months behind the initial schedule.

In this interval, the L VILLA Group has begun a phase of selling several sites, in order to gradually exit from RETAIL activities. Negotiations have been underway since 09/2022 with the CARNIVOR Group (producer and distributor of meat products) and the JOVER & Co group (operators of multi-brand restaurants in the Mediterranean basin). 

At this stage, the L VILLA Group has slowed the progress of the work to allow the buyer to have all the latitudes necessary for the implementation of its concept.

The objective is to temporize then to transmit the finalization of the work to the buyer of the site.

The originators line of TMP financing will be fully settled during Oct/November 2023.

Update from the originator: 

The deadlines for the Tribecca file are up to date. However, after several reminders to the operator, the originator did not obtain any reports on the progress of the operation.

The originator understands that the site seems to have been stopped for several months and therefore have no delivery date.

The originator is sending letters of formal notice during the week to obtain more information on the operation.

Update from the originator:

The payment of interest and principal was scheduled for 12/11/2022. The operator tells the originator that due to cash flow difficulties, he will not be able to make this payment before 01/12/2022.

After discussions with the operator, the originator has therefore agreed to settle this due date by 12/01/2022, the interest due being capitalized and bearing interest at the rate plus 11%.

Update from the originator: The operator was initially due to pay its interest on November 12, 2021. However, the manager, Laurent Villa, told the originator that he encountered cash flow difficulties linked in particular to the health crisis which strongly penalized the catering sector. He, therefore, made a first payment corresponding to half of the interest due on February 15, 2022. The balance of this interest then had to be paid immediately. Today, the operator confirms that it can settle this first interest payment according to the following schedule: Half of the interest still due at the end of May The balance at the end of June Interest due on November 12, 2021, is capitalized until it is actually paid.

Update from the originator:

The operator today paid half of the interest due.

The borrower plans to pay the second installment of interest on March 15. The originator will then capitalize this interest on the additional month of delay and modified the payment schedule accordingly.

Update from the originator:

The originator has received the first part of the interest from the Tribeca operation, so the originator is expecting the balance in the next few days (the operator has proceeded with the payment in several installments because of its bank limits).

Update from the originator: 

The operator was initially due to pay its interest on November 12, 2021. 

However, the manager, Laurent Villa, says that he is experiencing cash flow difficulties related in particular to the health crisis that has heavily penalized the restaurant sector. He is therefore unable to make the payment of interest. He assures the originator that he is doing his best to regularize this situation quickly.

The originator, therefore, sent a formal notice on December 10, 2021 to the operator to notify him of their disagreement. The interests due on November 12, 2021 will be capitalized until their effective payment.

We remain at your entire disposal for any further information,