REVAL HOTELLIGRUPP

ANNOUNCEMENT

26.04.99

 

REVAL HOTEL GROUP PLANS CAPITAL RESTRUCTURING.

 

Reval Hotel Group plans to activate a process of restructuring, which 

includes share issues and conclusion of long-term loan contracts.  

Currently the company prepares and holds negotiations with the 

international financing corporation IFC regarding a long-term (10-

year) loan in the volume of 115-120 million EEK.  

 

As a precondition for entering into the loan contract, IFC carried 

through a control analysis on Reval Hotel Group to ascertain the 

risks related to environment, fire-safety and social factors on Reval 

hotels. As of tomorrow, 27.04.99, the final report of the analysis is 

available for introduction in Internet (at 

<a href='http://www.reval.ee/korporatiivinfo/IFC' target='_blank'>http://www.reval.ee/korporatiivinfo/IFC</a> keskonna analüüs), or in Reval Hotel 

Group (Narva road 30) during workdays at 9.00-16.00.

 

Reval Hotel Group plans to use the proceeds from the projected share 

issue and loan to refinance the current 3-4 year debt obligations, 

and finance the projects started to realize the goals of extensive 

development of Reval Hotel Group.

 

In case of positive decision, IFC will become a strategic partner of 

Reval Hotel Group as long-term creditor. IFC will make its final 

decision by the end of May 1999.

 

 

Katrin Rasmann

Financial Director

Tel +372 62 74 444