XXI Century seeking to restructure debts, sell projects

XXI Century (XXIC LN), in a trading update published yesterday, said that it is at substantial risk of not meeting debt-related commitments unless it succeeds in restructuring payments due, notably if bondholders exercise their option to redeem the company’s USD 175 mln guaranteed secured notes on May 24, 2009. XXI Century said it has continued with its cost-cutting and capital raising initiatives and, to this end, has sold several individual assets since the last update including 2,480 m2 in its residential projects Capitoliy and Paris in Kyiv, 38.2 ha of its Lisnyky residential site for a total consideration of USD 5.9 mln (of which USD 5.4 mln has been received to date), and the uncompleted Kvadrat-Balzaka project in Kyiv for USD 2.98 mln. The company will use the cash proceeds to honor its financial obligations.