Mirland Developments' bondholders propose debt-to-equity restructure

MirLand Development's bondholders have proposed a debt restructuring that could converting $180m of the Russian property developer's debt into new equity.

Following a meeting to which MirLand's directors were not invited, the bondholders' debt-to-equity proposal would leave $45m of outstanding bonds, which would then themselves be restructured with payment not required until at least 2021.

Post-conversion MirLand would be 60%-owned by the bondholders, with which MirLand last met in February but was unable to reach any agreement, with controlling shareholders Jerusalem Economic, Industrial Building Corporation and Darban Investments asked to commit $25m further funding in return for approximately a 40% interest.

MirLand's debts began to cause consternation following the sharp decline in 2015 of the Russian ruble against the US dollar.

Shares in AIM-listed Mirland were down 12% to 32p on Wednesday.