Annual Report 2012 - ORCO Germany

ORCO GERMANY S.A.
Société Anonyme
R.C.S. Luxembourg B 102.254
NOTES TO THE ACCOUNTS
December 31, 2012
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In determining the appropriate basis of preparation of the standalone financial statements, the
Directors are required to consider whether the Company can continue in operational existence
for the foreseeable future. At the level of the Company’s subsidiaries, while the sale of Sky
Office has been closed at lower price than prior year valuation in order to close the refinancing
of Gewerbesiedlungs-Gesellschaft mbH (“GSG”, a fully controlled subsidiary), the economic
situation in Berlin is more than resilient and is probably one of the most dynamic in Europe. The
valuation of the real estate portfolio held in Berlin by GSG is increasing and the sales closed
there in 2012 were executed at prices much higher than prior year valuation.
As at the date of publication of this report, approximately 85% of the OG bonds have already
been exchanged against OPG issued bonds converted in turn into OPG shares. OPG has his
turn converted the OG bonds held following this exchange into OG new shares. Almost all of the
remaining OG bonds have been exchanged for EUR 20 million in New Notes issued by OPG.
As a consequence, the remaining OG bonds held by OPG following this exchange will be
converted into OG shares, further reducing LTV. After this last step the Company will no longer
have any material bond liability. The business plan is built on the capacity of the Company to
generate sufficient cash from its profitable subsidiaries in order to support the ones that are
currently in development or restructuring.
The Board of Directors has, as a result of the financial restructuring realized and the positive
cash flow from the rental activities of its subsidiaries, concluded that it is appropriate to prepare
the standalone financial statements as at 31 December 2012 on a going concern basis.
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