News
GILD Arbitrage to increase control over investments in Bulgaria
In the interest of investors and creditors, Risk Capital Fund GILD Arbitrage has decided to increase control over the fund’s investments in Bulgaria. GILD Arbitrage has made investments into the Bulgarian real estate sector through the bond issues of Mramori Tehnopark OÜ, Mortsajevo OÜ and Vladaja OÜ. In addition to the liquidity problems related to the current market situation, a delay in changing the comprehensive plan of the Bulgarian capital Sofia has been a major obstacle in executing the investment projects. To better represent the interests of the investors of GILD Arbitrage, Mr Urmas Laur, an experienced professional in the real estate sector, has been nominated to the Management Board of all three issuing companies. At the same time, the fund intends to seek higher participation in the operations of the Bulgarian companies related to the investment projects.
Urmas Laur is of the opinion that in addition to the liquidity problems related to the general market situation, the companies need further support in making local strategic and tactical choices and management of decision-making processes. „By strengthening the management of the project related companies we can better assess the quality of the decisions made and drivers for future decisions. The decisions should also increase the transparency of management actions for the investors. For moving forward with the investment projects, a change in the intended purpose of the plots is required. The change in intended purpose would be enabled by the modifications in the comprehensive plan of the Bulgarian capital Sofia, initiated in the spring 2007 have not yet been confirmed. According to our information, in total approximately 3,000 similar applications are delayed."
He adds: „We have started cooperation with the Estonian Embassy in Bulgaria to create contacts with different state and municipal institutions, bring their attention to the problems and have clarity about further prospects regarding this investment. Representatives of the Embassy have met with local authorities and representatives of the municipality to discuss possibilities for a speedier approval of the applications of Estonian investors."
The maturity date of the bonds of the applicable three companies was extended until November 30, 2009 to work out an activity plan and budget in cooperation with other bond investors.
For further information, please contact:
Kadri Kütt
Communication Manager
GILD Bankers
+372 56 800 467
kadri.kytt(at)gildbankers.com