Trump Ocean Club Panama Goes Through Debt Restructuring

approved - April 19, 2013 /MarketersMEDIA/ —

Panama's investor community is watching closely to see the outcome that the restructuring of the bonds issued by Newland International Properties, Corp will have on Panama's iconic development, Trump Ocean Club. The bondholders have until 5:00 pm on April 29th to accept or reject the bond-restructuring plan.

Punta Pacifica Realty has been receiving countless calls from investors expressing their concerns and looking for more up to date and accurate information. As the property management company representing the largest group of investors in the project Punta Pacifica Realty aims to provide reliable information based on facts rather than opinion.

The words Chapter 11 has made many investors nervous but this is simply a re-structuring strategy necessary for the bondholders to move forward under new terms. According to Gary Lundgren, an investor closely associated with the project and who serves on the Board of Directors for the Trump Ocean Club project: “The USA Chapter 11 Newland bankruptcy only affects the bonds and NOT the building.”

The reality is that if 96-100% of the bondholders accept the restructuring proposal then the Chapter 11 bankruptcy is not necessary because the only purpose of the bankruptcy is to force the terms of the restructured bonds onto the non-consenting bondholders.

It's extremely unlikely that 100% of the bondholders will accept a restructuring exchange offer so the Chapter 11 process is necessary to force the restructuring terms on dissenting "holdout" bondholders. The US courts appear to only have jurisdiction over the Newland International Properties, Corp bonds because US law, as structured in the indenture, governs them. This Chapter 11 process is a pre-arranged and pre-negotiated restructuring plan under the laws of New York.

Trump Ocean Club continues to be recognized as Panama City’s premier luxury resort providing solid rental returns for residential owners. Punta Pacifica Realty is Panama’s leading property management company managing the vast majority of residential apartments in the resort and working with the large multinational companies to ensure their executives have the opportunity to enjoy the exclusive Trump lifestyle.

For further information please contact Duncan McGowan, president of Punta Pacifica Realty, at the following numbers: USA (786) 528 -3080, Panama (507) 836-5991.

Release ID: 10359