Amsterdam, June 16, 2015 - Kardan N.V. (‘Kardan’ or ‘the Company’), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that - further to the announcements of December 18, 2014, January 6, April 2, and May 7, 2015 - it has been informed that both the meetings of holders of the Company’s debentures Series A and of debentures Series B (the “Debenture Holders’) have approved the Amended Deeds of Trust (replacing the original deeds of trust), reflecting a debt settlement between the Company and its Debenture Holders (the “Debt Settlement”).

The Debt Settlement in headline entails postponing the payments of principal of 2015 and 2016 by 24 months, against an additional interest of 1.875% p.a. for each series and pledges on the Group’s interests in all its main subsidiaries. In addition, certain financial covenants and business restrictions will apply until agreed upon relief thresholds have been met. Furthermore, 10% of the Company’s issued and paid up shares (fully diluted) shall be allocated to the Debenture Holders as well as a cash compensation of € 750k. Dividend distribution is prohibited until 75% of the outstanding par value as of December 31, 2014 has been repaid. The Debenture Holders shall additionally nominate a Board Member to the Board of Kardan, to be approved by the general meeting of shareholders.
The Debt Settlement shall enter into effect once certain conditions precedent have been met.

“We are very pleased with the outcome of this elaborate process. With this Debt Settlement in place we can fully focus on continuing to improve the results of our operating subsidiaries and thus on the value of the Kardan Group as a whole” states Shouky Oren, CEO of Kardan N.V.