The spp part has run its course. the $85M sale (at way inflated price) has removed a lot of the potential
to use it as a tool to gather new funds. it was too short sighted. look at what happened to the spp
share price since then.
Company is not on the verge of BK at all. the Park Inn by Radisson just opened in Bucharest a few
days ago. with that in place, the hotel complex should be able to generate NOI of 14M Euro.
The complex has 61M Euro debt and its value could easily exceed the book value of 140M Euro.
on top of the equity, Elbit loaned the complex 11M Euro for the buyout (98% now belongs to Elbit).
The PR you are seeing is for the two hedge funds in control, arguing how to manage plaza centers (45%
owned by Elbit). DK was expecting quick returns and York, who is the largest share holder in Elbit and
appointed the plaza manager, is not delivering so far good appreciation.
Lets see if something positive happens here. the asset values here justify a much higher price.
Plaza has 4 remaining active properties (in operation with a NOI). one of them was Liberec. this mall
is not doing very well and its NOI is low (due to stiff competition and some mismanagement).
One of the reasons the mall was neglected was due to the fact that the loans against it were too high
to support. my understanding was that Plaza was responsible for the mortgage, but it seems I was
wrong. cutting the debt against the property could allow Plaza to invest properly in it and develop it and
would increase the equity.
Anyway, that is good news.