Real Estate Opportunities (REO) said today it had made "significant progress" on an agreement to restructure its finances.
In June it was reported that REO, in which Treasury Holdings is the majority shareholder, planned to spin off Battersea power station having booked a loss of close to £1 billion (€1.2 billion) for the 14 months to the end of February.
The company said today it was involved in ongoing financial restructuring negotiations with lenders, the National Asset Management Agency (Nama), and an ad hoc informal committee comprising larger holders of its 7.5 per cent convertible unsecured loan stock (CULS) and the zero dividend preference (ZDP) shares issued by subsidiary REO Securities.
It said it had made significant progress towards agreeing a consensual financial restructuring with the informal committee, and it was now discussing it with other lenders.
The proposal is supported by Treasury Holdings.
REO also said it would not pay the interest payment due to CULS holders on August 31st.
Separately Treasury China Trust (TCT), which is 40 per cent owned by Treasury Holdings, announced it had agreed a strategic partnership with Trio Group to expand its presence in China.
Chief executive Richard David said further announcements were expected in the coming months.
The new deal will see TCT take over a majority equity and managerial control of invested projects, focusing on commercial properties. TCT will be involved in overseeing all design, development and asset management functions, and provide technology and systems transfers to Trio.
