Bulgarian property developer Orchid Developments said it was continuing to make strong progress and is actively looking for new sites.

Chairman David Holland said, We remain confident that Orchid can continue to pursue exciting and profitable opportunities in both the commercial, residential and retail markets and will continue to pursue land acquisitions in our key areas, Sofia and Varna.

Orchid reported a pre-tax net loss of 1.175m for the year to December from 953,000 a year earlier, as a result of the scaling up of its development team, on revenues of 3.41m during the period from 1.14m last time.

The group added that property developments remain ahead of expectations having acquired three new development plots in central Varna since its IPO for 21m.

We are actively seeking to acquire further sites, with an increased focus on retail space, taking advantage of the greater financial resources and credibility gained as a result of our IPO, said the group.

http://www.growthcompany.co.uk/recommendations/25300/orchid-developments.thtml
http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=81415
http://www.orchid-dev.com/

http://investmentpropertybg.com/blog/

Friday, April 07, 2006
Bulgaria property prices set to soar with EU Accession Looming.

The wheels are now fully in motion for the full entry of Bulgaria into the EU. The final articles have been ratified by the European Commission and all entry clauses have been satisfied . Full acceptance is now just months away.

This means even greater buoyancy and optimism for the property market on the back of the massive investment which will accompany EU accession. Prices have risen steadily over the past three years and now look set to take a steep upturn.

Pioneering speculators have been snapping up property bargains for years. Now the hesitant investors, previously unsure as to the future development of Bulgaria, look set to join the investment frenzy as the country gains the stability and worldwide recognition that EU membership brings.

I see Shores has put out a revised broker note - The last note issued alongside results (11/04) highlighted that Orchid stood at a discount to a materially increased NAV -

Company broker Shore Capital estimates that Orchids discounted net asset value has increased significantly from the 83p per share valuation at the time of the IPO last July and now represents a material premium to the present share price.

However the new note highlights a price figure for this discount - 195p

"Orchid has made strong progress since its IPO last July. Orchid Hills, the
groups residential development in Sofia, is now half sold. Construction of
the Porsche Centre Sofia is now complete and the building is scheduled to
open in the near future (50% of the office space is currently let or at an
advanced stage of negotiation). Since the year end, Orchid has acquired
two large sites in Varna (Bulgarias third city) on which it plans to develop
retail, residential and commercial buildings. A combination of rising rents,
yield compression and an expansion of the groups land bank imply a
significant uplift in the groups net project value (NPV). We calculate a total
NPV (net of debt) of 195p, a significant premium to the current share price."

Well that looks like a 50% premium to todays price :)

News out - excellent placing price smack on the price at the time...shows the demand here...

Orchid Developments, the AIM-traded property developer and hotel operator in
Bulgaria, is pleased to announce a successful share placing by Shore Capital
Stockbrokers Limited, raising approximately Euro25 million before expenses.

12,338,010 Placing Shares have been conditionally placed, subject to shareholder
approval, at 139p per share with institutional and other investors. The net
proceeds of the Placing will be used to provide additional working capital for
the Group to enable it to further deliver on its IPO strategy to exploit the
full potential of the real estate market in Bulgaria.

Bellport Corporation, a company in which the Company's joint Chief Executives,
Ofer Miretzky and Guy Meyohas are interested, has subscribed for 392,688 Placing
Shares in the Placing (representing 0.52 per cent of the enlarged issued share
capital of the Company). As a result, Ofer Miretzky and Guy Meyohas, are now
each directly or beneficially interested in 11,196,344 Ordinary Shares,
representing approximately 14.78 per cent of the total shares in issue after the
Placing. In addition, Broughton Limited has subscribed for 103,639 Placing
Shares (representing 0.14 per cent of the enlarged issued share capital)
following which Timothy Childs, a non executive Director of the Company, will be
interested in 638,839 Ordinary Shares, representing 0.84 per cent of the
Company. After the Placing, the Directors will together be interested in 30.61
per cent. of the total shares in issue.

The Placing Shares will rank pari passu in all respects with the Existing
Ordinary Shares, including the right to receive all dividends and other
distributions hereafter declared, made or paid.

The Placing is conditional on the approval of Orchid Developments' shareholders.
A notice convening an extraordinary general meeting to be held at 10:00 a.m on
1 June 2006 has today been despatched to shareholders.

Application is expected to be made for the Placing Shares to be admitted to
trading on the AIM Market of the London Stock Exchange ("AIM"). It is expected
that dealings in the Placing Shares will commence on AIM on 2 June 2006. The
Placing Shares represent approximately 16.29 per cent of the issued share
capital of the Company as enlarged by the Placing.

David Holland, Non Executive Chairman, commented: "We are delighted to have
secured this additional funding. The proceeds of the Placing will allow Orchid
Developments to continue to build on our strong growth to date by acquiring and
developing additional sites."

Would presume this additional 'Euro25 million' funding is in connection to what The Times reported on last week -

"Orchid Developments gained 6p to 138p on talk that it is set to get the green light on Bulgarian developments"

Saturday Papers: tips and comment
Published: 09:47 Saturday 29 April 2006
By: Phil Cozens, Stockmarket Correspondent
"Talk that Orchid Developments is set to get the green light on Bulgarian developments"


And as summarised in their announcement above - maybe we will hear imminently?

David Holland, Non Executive Chairman, commented: "We are delighted to have
secured this additional funding. The proceeds of the Placing will allow Orchid
Developments to continue to build on our strong growth to date by acquiring and
developing additional sites."

Orchid raises 25.1 mln euro in share sale to fund expansion

Orchid Developments Plc, a hotel and commercial real-estate owner in Bulgaria that sold shares in an initial public offering last year, raised 25.1 mln euro in a share sale to fund expansion, news agency Bloomberg reported on Wednesday, May 10.
'The proceeds will allow Orchid to continue to build on our strong growth to date by acquiring and developing additional sites,' chairman David Holland said in a statement with the Regulatory News Service of the London Stock Exchange.
The company's loss widened 22 percent to 1.17 mln euro last year because of higher costs and spending on developments, said Bloomberg.
Investors will have to approve the share placing at a shareholders' meeting on June 1, Orchid said.
The latest property acquired by Orchid Developments in Bulgaria was a 6,500 sq m development plot in the center of Varna priced at 8 mln euro.
The land has zoning approval for a mixed use development of retail and residential buildings. The company intends to develop a mixed use complex with a floor space of approximately 35,000 sq m.
The completed development cost is estimated at around 26 mln euro including the cost of the land.
Orchid Developments also owns another development plot in Varna, a 26,000 sq m site in the center of the coastal city acquired for 12.7 mln euro earlier this year.
The land has zoning approval for commercial and retail developments. The fund intends to develop a mixed use complex of retail and commercial buildings with a floor space of approximately 60,000 sq m.
Orchid Developments is also making progress on Orchid Hills, a gated residential compound in the foothills of the Vitosha mountain. The luxe community should be completed by the end of 2006.
The company owns the Yavor and Golden Yavor hotels in Bulgarian sea resort Zlatni Pyasatsi and the Porsche Office Centre in Sofia.(Dnevnik)

Could well provide a welcome boost.

http://www.novinite.com/view_news.php?id=63438

Barroso Wants Bulgaria, Romania in EU on Jan 1, 2007

:-))))))))))))

wow!!

12 January 2012

Orchid Developments Group Ltd

("Orchid" or the "Company")

Proposed Amendments to Management Agreement and Articles of Association

Notice of Extraordinary General Meeting

Orchid, the specialist investor in the Bulgarian real estate and leisure market, today announces that it has reached agreement with Bellport Corporation ("Bellport"), the vehicle which is controlled by and provides the services of the joint Chief Executive Directors, Guy Meyohas and Ofer Miretzky, subject to Shareholder approval, to:

· amend the provisions of Bellport's management agreement to capitalise part of an accrued bonus;

· formalise the terms on which balance of the accrued bonus will be paid; and

· enter into a new bonus arrangement to replace the existing bonus scheme.

In addition, the Board confirms that its primary focus for the immediate and medium term is to maximise shareholder value and returns. To this end, Orchid may, if market conditions permit and realistic valuations can be achieved:

· dispose of the Group's assets in such manner as it sees fit and in the best interests of Shareholders; and

· if circumstances arise, these measures could also involve the return of capital to Shareholders.

Accordingly, the Company also proposes amendments to the Articles of Association such that a general meeting will be called on or before 31 December 2013, where resolutions will be put to Shareholders to allow them to decide whether:

· the Company should realise its assets at that time;

· defer such a decision for a year; or

· continue in its current form.

During the term of the Management Agreement, Bellport, Guy Meyohas, Ofer Miretzky have agreed that they will and they will procure that their connected persons will abstain from voting on these resolutions.

Variation to the Management Agreement

On 30 June 2005, at the time of the IPO, the Company and Bellport entered into the Management Agreement pursuant to which Bellport agreed to provide the services of Guy Meyohas and Ofer Miretzky to the Company in return for the payment of certain fees and performance related bonuses. Bonus payments under the Management Agreement are calculated on the basis of the profits before tax as set out in the consolidated audited accounts of the Company.

(1) Accrued Bonus

In the Report and Accounts for the year ended 31 December 2009, following the adoption of IAS 40, the accounting classification relating to the Company's flagship development, the Grand Mall Varna, was changed to that of an investment property which gave rise to a fair value adjustment of €35,466,000 which was recognised as income in the consolidated statement of comprehensive income for the period ended 31 December 2009. Including this net change in fair value of the investment property, the Group made a profit after tax of €26,767,000 which gave rise to a bonus of €1,939,000 payable to Bellport (the "Accrued Bonus"). Bellport agreed at that time not to require immediate payment of the Accrued Bonus and to renegotiate the bonus arrangements so as to better reflect the value of the Group's assets and the performance of Orchid. Conditional upon the passing of the Resolution and Admission, the Independent Board has come to an agreement with Bellport to satisfy the Accrued Bonus as follows:

(a) by the issue of 5,500,000 new Ordinary Shares at 20p per share (which represents a premium of 900 per cent. over the closing middle market price of an Ordinary Share on 11 January 2012 of 2p per Ordinary Share) ("Capitalisation Shares"); and

(b) by the issue of the Loan Note in respect of the sum of £548,150 together with accrued interest at the rate of 3 per cent per annum from 1 January 2010. Interest will continue to accrue until the Loan Note is repaid. The Loan Note will be repaid on the earlier of 31 December 2013, a Change of Control Transaction, the date of termination of the Management Agreement and the winding up of the Company.

When the Capitalisation Shares are issued and, subject to their admission to trading on AIM, Bellport and its connected persons (including Guy Meyohas and Ofer Miretzky) will hold 28,162,688 Ordinary Shares amounting to 29.97 per cent. of the issued share capital of the Company.

If the Management Agreement is terminated by the Company prior to 31 December 2013 other than for material breach, the Company has agreed to pay to Bellport a cash sum on such termination equal to the difference between the mean volume weighted average price of an Ordinary Share for the six week period prior to termination, and 20p, multiplied by the number of Capitalisation Shares.

(2) Replacement Bonus Arrangement

In addition to the agreement with respect to the Accrued Bonus, conditional upon the passing of the Resolution and Admission, Bellport and the Company have agreed to replace the existing bonus arrangement in the Management Agreement with a new performance related bonus ("Replacement Bonus") which will be calculated as:

(a) zero per cent. of the Total Shareholder Returns up to and including £0.20 per Ordinary Share;

(b) 10 per cent. of the Total Shareholder Returns over £0.20 per Ordinary Share up to and including £0.30 per Ordinary Share; and

(c) 25 per cent. of the Total Shareholder Returns over £0.30 per Ordinary Share.

Total Shareholder Returns shall mean the aggregate cash amount per Ordinary Share which is received by Shareholders on or after the date of the amendment agreement to the Management Agreement and up to and including 31 December 2013 (or such later date as the Remuneration Committee of the Board with the approval of a special resolution of the Shareholders shall agree) as a result of dividends, any Takeover, and/or any return of capital (on liquidation or otherwise) (and on a return of capital, the amount receivable by Shareholders shall be deemed to be before any deduction is made to take account of the Replacement Bonus).

Any Replacement Bonus due shall be payable in cash by the Company on the earlier of 31 December 2013, a Takeover and the winding up of the Company. In the event of a Capital Variation, the threshold levels of Total Shareholder Returns set out above may be adjusted in such manner as an independent firm of accountants appointed by the Company for such purpose (acting as experts and not as arbitrators) shall certify as being necessary in order that, after such adjustment, Bellport will be in the same economic position as it had been prior to the Capital Variation.

Bellport's potential entitlement to a Replacement Bonus shall continue in the event that the Management Agreement is terminated by the Company prior to 31 December 2013, other than where such termination is for material breach. If the Management Agreement is terminated by the Company prior to 1 January 2013 or any Change of Control Transaction occurs, the full Replacement Bonus remains payable. If the Management Agreement is terminated by the Company after 1 January 2013, or prior to such date but after a Change of Control Transaction, a proportion of the Replacement Bonus is payable, if applicable, to reflect the contribution made by Bellport prior to termination.

If the Resolution is not passed and if Admission does not take place by 29 February 2012 the conditional agreement with Bellport to amend the Management Agreement as outlined above will lapse.

(3) Change of Control

The Company and Bellport have agreed that, in the event of a Change of Control Transaction (other than a Change of Control Transaction by Bellport, Guy Meyohas, Ofer Miretzky and/or any person acting in concert with any of them) prior to 31 December 2013 where the price per Ordinary Share or value per Ordinary Share of the Change of Control Transaction is less than 20 pence (the "Reference Price"), the Company shall pay to Bellport, in addition to the Replacement Bonus, an amount equal to the number of Capitalisation Shares multiplied by the difference between the Reference Price and the price or valuation of an Ordinary Share pursuant to the Change of Control Transaction. In the event of a Capital Variation, the Reference Price may be adjusted in such manner as an independent firm of accountants appointed by the Company for such purpose (acting as experts and not as arbitrators) shall certify as being necessary in order that, after such adjustment, Bellport will be in the same economic position as it had been prior to the Capital Variation.

Extraordinary General Meeting

An extraordinary general meeting of the Company will be convened on 15 February 2012 at which a special resolution will be proposed for the purposes of implementing the Proposals.

Recommendation

As Guy Meyohas and Ofer Miretzky are interested in the arrangements with Bellport, they have not taken part in the Board's deliberations. The Independent Directors, who have been so advised by Shore Capital and Corporate Limited, the Company's nominated adviser, which has taken into account the Independent Directors commercial assessment of the Proposals, consider that the Proposals, and the Resolution to be proposed at the EGM, are in the best interests of the Company and its shareholders as a whole and unanimously recommend Shareholders to vote in favour of the Resolution. Bellport, Guy Meyohas and Ofer Miretzky have undertaken to vote in favour of the Resolution in respect of 22,662,688 Ordinary Shares, amounting to approximately 25.6 per cent. of the issued share capital of the Company.

Circular

A circular containing details of the Proposals together with the Notice of Extraordinary General Meeting (the "Circular") is expected to be posted shortly and a further announcement will be made in due course.

no wonder this is shooting up - this should equate to 25 to 30p share - explains why hard to buy - wonder where this will go today??

all buys at the mo

low volume shares available very interesting!!!

looking fwd to this being sold and return capex to shareholders :-))))

http://www.reuters.com/finance/stocks/OCH.L/key-developments/article/1902255

hmmm gets more intersting substantial cash pot to be returned from multiple properties perhaps - overview.....

Orchid Developments Group Limited (Orchid) is a United Kingdom-based company. It is engaged in a real estate development and hotel operations in Bulgaria. The Company’s sub-sectors include Bulgarian real estate market, leisure markets and hotels with leisure facilities. It operates in three segments: commercial property development, residential property development and hotel. The hotel segment includes the development, renovation and operation of hotel on the Black Sea coast. The development and letting out of premises for offices and shops is undertaken by the commercial property segment. The residential property segment is engaged in developing and selling residential units. During the year ended December 31, 2009, the Company acquired and developed Grand Mall Varna, Retail and Commercial Project, Logistic Centre, Varna and Ring Road Project, Sofia, Airport City Commercial project, Golden Yavor Hotel in Golden Sands Resort, Varna and Administrative building, Varna.

and much more like this...


RNS Number : 9657P
Orchid Developments Group Ltd
12 October 2011



12th October 2011

Orchid Developments Group Ltd.
("Orchid" or the "Company")
International retailer H&M select Grand Mall for first store in Varna

Orchid Developments Group Ltd, the Bulgarian focused property developer and investor, today announces that H & M, Hennes & Mauritz AB (H&M), the international fashion retailer has recently signed a new tenancy agreement at the Grand Mall Varna.

As part of H&M's international expansion plans the fashion retailer has agreed to take over 2000 sqm across two levels of the Grand Mall for a full concept store. This leasing represents 4.5% of the total net lease area of the Grand Mall and brings the current leased area to over approximately 76.7% (38,146 sqm). H&M intend to open their flagship store in spring 2012 at Grand Mall Varna, which is already home to international brands such as Bershka, Carrefour, Mango, Nike and Zara.

Guy Meyohas, Chief Executive Officer of Orchid, said: "We are delighted that H&M have chosen the Grand Mall Varna for their flagship store in the region. Securing a high quality brand like H&M demonstrates that the Grand Mall is the best retail location in Varna."

:-)))))))))))))))))))

kerrrrrrrrrrrrrrrrchinnnnnnnnnnnnnnnggggggggggggggggggggggggggggggggg

will spike over 10p here today with ease imo lol

still early!!!!!!!!!!!!!!!!!!!! lol

27 January 2012

Orchid Developments Group Ltd

("Orchid" or the "Company")

Statement re share price movement

The Company notes the movement in its share price yesterday and also notes press commentary in relation to a possible offer for its key asset, the Grand Mall in Varna. The Company can confirm that no offer or approach for the property has been received to date.

However, the Company can confirm that it has received a preliminary approach from a third party which may or may not lead to an offer for the Company being made. The approach is at a very early stage and there can be no guarantee that it will result in an offer being made.

The Company which is incorporated in the Cayman Islands is not subject to the City Code on Takeovers and Mergers ("Code"). Consequently, there will be no automatic 28 day "put up or shut up" as would be the case were the Company subject to the Code.

Further announcements will be made as appropriate.

interesting whole company might be bought - current NAV is at least 30p potential to about 70p imo - gonna sit this one out to the end now:

http://www.proactiveinvestors.co.uk/companies/market_reports/38286/company-snapshot-bp-aminex-range-resources-serco-group-solo-oil-bayfield-energy-mwana-africa-orchid-developments-0000.html

Away from resource stocks, real estate firm Orchid Developments (LON:OCH) responded to yesterday’s surge in its share price, which was driven by rumours that the group has found a buyer for its key asset, the Grand Mall in Varna.

The company denied that it has received an offer for the asset, however, it said that it has received a preliminary approach from a third party, which “may or may not lead to an offer for the Company being made”.

keeping in mind the directors need 20p to make their options worth anything to them i expect this to be 20 to 40p range by end febraury or earlier and latest NAV we have is:

Net Asset Value (at 30 Jun 11) arrived at by:

CURRENT ASSETS = €208,707m:

Non-current assets of €167.3 million

Current assets of €41.4 million

minus

TOTAL LIABILITIES = €133,358m

Non-current liabilities of €102,247m

Current liabilities of €31,111m

Net Asset Value(CURRENT ASSETS - TOTAL LIABILITIES) = €75.3m or £0.74/share

what a great day!! plenty more to come imo:

Rockefeller Eyes Third Property Deal in Bulgaria

Properties | November 8, 2011,

http://www.novinite.com/view_news.php?id=133753

"We will have a new deal over the next three months. It will be in Sofia," Chris Bennett, Director-Head of Acquisitions at Europa Capital Emerging fund said at the conference for properties BalREc 2011.Bennett said the deal price will range between EUR 30-40 M, but refused to disclose the property sector the acquisition belongs to."

"In August Europa completed the acquisition of Mall of Sofia, Sofia, Bulgaria, from GE Real Estate"

Orchids Head Office is in Sophia See website, "contact"

http://orchid-dev.com/

Europa Capital website:

http://www.europacapital.com/europa/en/home/

Europa Capital news (they have already aquired the Mall of Sophia on 16 Aug 11 !):

http://www.europacapital.com/europa/en/news/press-releases

If the "UR 30-40 M" is for OCH then this equates to £25m(28.25p/share) - £33.5m (37.87p/share) with 88,466,260 shares currently in issue !

If this is true, it would explain why there will be 5.5m new shares at 20p/share authorised and why the Directors are pushing through the new bonus scheme on 15 Feb !

12 Jan 12

http://www.uk-wire.com/Article.aspx?id=201201120944134497V

the Independent Board has come to an agreement with Bellport to satisfy the Accrued Bonus as follows:

(a) by the issue of 5,500,000 new Ordinary Shares at 20p per share (which represents a premium of 900 per cent. over the closing middle market price of an Ordinary Share on 11 January 2012 of 2p per Ordinary Share) ("Capitalisation Shares");



agreed to replace the existing bonus arrangement in the Management Agreement with a new performance related bonus ("Replacement Bonus") which will be calculated as:

(a) zero per cent. of the Total Shareholder Returns up to and including £0.20 per Ordinary Share;

(b) 10 per cent. of the Total Shareholder Returns over £0.20 per Ordinary Share up to and including £0.30 per Ordinary Share; and

(c) 25 per cent. of the Total Shareholder Returns over £0.30 per Ordinary Share.

another satisfactory day at the office and more tomorrow imo till 20p + this week perhaps

:-))))))))))))))))

another fantastic day :-))))))))))))))))))))
20p + in sight!! lol

maybe 20p tomorrow lol!!!

:-))

http://www.moneyam.com/action/news/showArticle?id=4301529

cheers dc - yep that transaction was 30/1 and long since swallowed up - good day today on the spike :-)) - expecting more here lots happening / be great if the t/o talk mentioned in the rns a few days ago turns into a bidding war - nav is not far off 80p even at a hefty discount should get 20p minimum ref directors 20p buys et cetera!! dont know if you have been in here if not definitely worth considering - roll on tomorrow again

Update on preliminary approach from third party
RNS
RNS Number : 6037X
Orchid Developments Group Ltd
17 February 2012

AIM: OCH

17 February 2012

Orchid Developments Group Ltd

("Orchid" or the "Company")

Update on preliminary approach from third party

Further to the announcement made on 14 February, Orchid, the specialist investor in the Bulgarian real estate and leisure market, confirms that the preliminary discussions with a third party did not lead to an indicative offer for the Company ("Offer") being made and that, therefore, the discussions regarding an Offer have now terminated

Orchid Developments in need of capital injection
StockMarketWire.com
Orchid Developments reports that the economic environment in which the Group is operating remains extremely difficult, and seeks additional capital to stay in operation.

The quantum of free cash flow, which may be generated in the short to medium term including from the sales of apartments and other assets, remains difficult to predict and unclear. In addition, the margin of forecast available cash over requirements, as stated on 3 July 2012, remains modest.

Most recently, the sale of an asset which the Group's board had anticipated did not proceed as planned for reasons beyond the control of the Group.

In addition, the Group cannot be certain that it can continue to operate with the full support of its creditors. The consequences of these factors mean that the cash position of the Company is more uncertain than forecast at the time of the announcement made on 3 July 2012.

As a result, the Directors believe that the Group is likely not to be able to operate as planned, unless additional capital is raised. Consequently, the Board is considering the best manner in which to address its immediate working capital needs. A further announcement will be made in due course.

Good recovery today.

Court award against Orchid Sofia Hills Ltd
RNS
RNS Number : 2939L
Orchid Developments Group Ltd
03 September 2012

3 September 2012



Orchid Developments Group Ltd.

("Orchid" or the "Group")



Court award against Orchid Sofia Hills Ltd and update re financial position



Orchid (AIM: OCH), the Bulgarian focused property developer and investor, announces a court award against Orchid Sofia Hills Ltd and update of its financial position. As reported in the Group's interim results for the period ended 30 June 2011 (released on 30 September 2011) there were two court cases pending in Sofia City court between Consortium Remi Group JCS (the general building contractor for the Group's Orchid Hills development in Sofia) and Orchid Sofia Hills Ltd.

In the first court case, the court found in favour of Orchid Sofia Hills Ltd in relation to the retention of €186,000 by Orchid Sofia Hills Ltd as a deduction for low quality execution of works by Consortium Remi Group JCS, which was claiming €197,710.

In the second court case, Consortium Remi Group JCS had made claims relating to a delay of 58 days in the payment of 4 invoices by Orchid Sofia Hills Ltd to Consortium Remi Group JCS. The amount claimed was for the interest relating to the delay in payment of the invoices. The Sofia City court found in favour of Consortium Remi Group JCS and awarded an amount of €213,000, of which €36,211 was seized from the bank accounts of Orchid Sofia Hills Ltd in July 2011 (as previously announced).

The Board has since learned that the Sofia City court has allowed Consortium Remi Group JCS to appoint a new bailiff in relation to the outstanding claim. This bailiff has taken possession of the remaining 12 apartments held for sale in Orchid Sofia Hills and is preparing to sell these at public auction to satisfy the outstanding court award.

Orchid Sofia Hills Ltd is a ring-fenced subsidiary of the Group, however, the 12 seized apartments can no longer be expected to be sold for the benefit of the Group.

As announced on 16 August 2012, the Directors believe that the Group will not be able to continue to operate, taking into account its current cashflows, unless additional capital is raised. The Board is continuing to evaluate the best manner in which to address its immediate working capital needs. A further announcement will be made in due course.

1