NABI concludes agreement with loan providers
Monday, May 23, 2005, 00:00
NABI Bus Industry Rt has concluded an agreement with its loan providers to restructure the company?s short term loans worth approx. USD 100 million and other bank contracts. According to the agreement, loan providers will cut the registered loan to USD 60 million and they will receive NABI shares in exchange. Thus they will acquire a 90% stake in NABI Rt?s chief subsidiary NABI Inc. and a max. 33% ownership in NABI Rt. The reduced loans are long term loans with a grace period of five to eight years. NABI?s former option documents offered for loan providers will lose their value after the restructuring.
After changing their loan into capital, the loan providers will be entitled to nominate candidates to max. one-third of the board positions in NABI Rt and all but one directors of NABI Inc. Personnel changes have been involved in the restructuring process. J. Daniel Garrett who was both CFO of NABI Group and chairman-CEO of NABI Inc. resigned from his positions. His duties will be taken over by chairman-CEO of the group András Rácz and director of NABI Rt and NABI Inc. Russell Richardson.