UNI - EN REPORT No
UNI - EN REPORT No28/2019
Plaza Centers N.V. (“Plaza” / “Company” / “Group”) today announces its results for the six months ended 30 June 2019. The below results have not been audited nor reviewed by auditor.
• Reduction in total assets to €60 million as a result of the Company’s portfolio repositioning and deleveraging strategy (December 31, 2018: €62 million)
• Book value of the Company’s Trading properties decrease by €0.5 million to €42.1 million over the period, due to disposal (land plot in Poland) in line with the restructuring plan and increase of the value of the plot land in Miercurea Ciuc, Romania by €0.5 million
• Consolidated cash position as at June 30, 2019 decreased to circa €0.6 million (December 31, 2018: €1.4 million) and current cash position of circa €1.1 million
• Revenue from disposal of trading properties totalled €0.9 million (June 30, 2018: €0.2 million) in line with the Company’s disposal program
• €0.4 million loss recorded at an operating level (June 30, 2018: €5.5 million) including partial reversal of write down which increase the trading properties value by €0.5 million and significant decrease in administrative expenses
• Administrative expenses reduced to €0.7 million in 2019 due to cost cutting of professional services and manpower (June 30, 2018: €1.5 million)
• Recorded loss of €10.9 million (June 30, 2018: €9.8 million), mainly due to finance expenses on bonds
• Basic and diluted loss per share of €1.59 (30 June 2018: loss per share of €1.43)
Material events during the period:
Pre-Agreement for the sale of a Plot of Land in Brasov, Romania:
On February 5, 2019 the Company signed a Pre-Agreement for the sale of a plot in Brasov, Romania for a total gross amount of EUR 620,000 (the “Transaction). The consummation of the Transaction (which will take place not later than January 15, 2020) is subject to the fulfilment of certain conditions, including, inter alia:
(i) the former financing bank of the Project did not exercise its right to purchase the Property until December 6, 2019; (ii) successful conclusion by the potential purchaser of its due diligence investigations; and (iii) the execution of definitive agreement.
During the period commencing on the date of the execution of the Pre-Agreement and ending on the earlier of: (i) January 15, 2020, or (ii) the date of the termination of the Pre-Agreement, the Company and its representatives have undertaken to refrain from negotiating with any other third party other than the Purchaser (and other than the bank as mentioned above) for the purpose of selling its Plot of land.
As of the date hereof, there can be no certainty that a definitive agreement will be signed and/or that the Transaction will be consummated.
Sale agreement of plot in Bangalore, India:
In March, 2008 Elbit Plaza India Real Estate Holdings Limited (a subsidiary held by the Company (50%) and Elbit Imaging ltd.(50%)) ("EPI") entered into a share subscription and framework agreement (the "Agreement"), with a third-party local developer (the "Partner"), and a wholly owned Indian subsidiary of EPI which was designated for this purpose ("SPV"), to acquire together with the Partner, through the SPV, up to 440 acres of land in Bangalore, India (the "Project") in certain phases as set forth in the Agreement. As of June 30, 2019, the Partner has surrendered sale deeds to the SPV for approximately 54 acres (the "Plot"). In addition, under the Agreement the Partner has also been granted with 10% undivided interest in the Plot and have also signed a Joint Development Agreement with the SPV in respect of the Plot.
On December 2, 2015 EPI has signed an agreement to sell 100% of its interest in the SPV to the Partner (the "Sale Agreement"). The total consideration upon completion of the transaction was INR 321 crores (approximately EUR 40.2 million) which should have been paid no later than September 30, 2016 (" Long Stop Date"). On November 15, 2016, the Partner informed EPI that it will not be able to execute the advance payments.
As a result of the foregoing, the Company has received from the escrow agent the sale deeds in respect of additional 8.7 acres (the "Additional Property") which has been mortgaged by the Partner in favor of the SPV in order to secure the completion of the transaction on the Long Stop Date. The Additional Property has not yet been registered in favor of the SPV for cost-benefit reasons. In addition, as per the Sale Agreement, the Company took actions in order to get full separation from the Partner with respect to the Plot and specifically the execution of the sale deed with respect of the 10% undivided interest, all as agreed in the Sale Agreement.
As a result of the failure of the Partner to complete the transaction under the Sale Agreement and in accordance with the provisions thereto, EPI has 100% control over the SPV and the partner is no longer entitled to receive the 50% shareholding.
In light of the above, and after lengthy negotiations between the parties, new understandings were formulated and the parties signed a revised agreement that substantially altered the outline of the original transaction (and this agreement was amended several more times, the last of which in April 2019), and concluded that: (i) the closing date for the transaction will be extended to November 2019, and may be further extended to August 2020 (the "Closing Date"). It should be clarified that the postponement of the closing date to August 2020 is subject to receipt of payments due by November 2019 (approximately Eur 12 million) and subject to mutually agreed payment terms; and (ii) the consideration will be increased to INR 356 crores (approximately Eur 45.1 million) (Plaza part approximately Eur 22.6 million) (the "Consideration").
On July 25, 2019, the Company announced that the Partner paid Eur 0.127 million (INR 1 crore) (Company part approximately EUR 0.063 million) and thereby having paid Euro 0.76 million (INR 6 crores) out of the approximately EUR 3.05 million (INR 24 crores) to be paid until the end of July 2019, and that the Partner seeks more time without committing to a schedule for payment of the remaining amount. During august 2019 the Partner paid ad additional INR 1 crore (EUR 0.125 million).
At this stage, there is no clarity on payment of the remaining amount and the Company is taking necessary steps to protect its interest.
As of this date, the Partner paid EPI approximately EUR 11.1 million (INR 87 crores) (Company part approximately EUR 5.57 million) on account of the Consideration (which EPI is entitled to forfeit if the Partner does not close the transaction as per the agreement), instead of a total of INR 1,100 crores (approximately Euro 14 million) that should have been received by this date. A total of approximately Euro 5.4 million (INR 43 crores) should be paid in unequal monthly installments until the Closing Date; and a total of approximately Euro 28.5 million (INR 226.6 crores) should be paid upon Closing Date.
Regarding Environmental update on Bangalore project and the implications on the net realisable value refer to Note 7 (1) in the interim condensed consolidated financial statements as of June 30, 2019 and information below.
Environmental update on Bangalore project - India:
On May 4, 2016, the National Green Tribunal ("NGT"), an Indian governmental tribunal established for dealing with cases relating to the environment, passed general directions with respect to areas that should be treated as "no construction zones" due to its proximity to water reservoirs and water drains ("Order"). The restrictions in respect of the "no construction zone" are applicable to all construction projects.
The government of Karnataka had been directed to incorporate the above conditions in respect of all construction projects in the city of Bangalore including the Company's project which is adjacent to the Varthur Lake and have several storm-water crossing it.
An appeal was filed before the Supreme Court of India against the Order. On March 2019, the Supreme Court has set aside the Order thereby restoring the position as it existed before the Order was passed by NGT.
Sale agreement of plot in Chennai, India:
In July 2018, Elbit Plaza India Real Estate Holdings Limited ("EPI"), has signed a term sheet with its local partner ("Buyer"), relating to the sale of EPI's Indian subsidiary ("SPV") that holds 74.7-acre plot in Chennai, India ("Term Sheet"). Under the terms of the Term sheet, the Buyer shall have 60 (sixty) days to conduct due diligence only with respect to the SPV, following which definitive agreements, for the sale of the SPV in consideration of approximately €13.2 million (INR 1,060 million, the Company's share approximately €6.6 million), (subject to adjustment with respect to the previous deposit that was placed and the existing cash in the SPV level), shall be signed and closing shall take place on the same day. The closing of the transaction was expected in February 2019. As the transaction was not completed the Term Sheet was terminated by EPI.
In February 2019 the Chennai Project SPV issued notice to the buyer terminating the Joint Development Agreement („JDA”) due to its failure to obtain the access road. The said termination of JDA has been disputed by the Buyer. Therefore, the Chennai Project SPV has initiated arbitration proceeding against the Buyer in accordance with the Arbitration Rules of the Singapore International Arbitration Centre, in accordance with the JDA Agreement to protect its rights.
In June 2019, the parties have signed a share purchase agreement ("SPA") according to which:
a. The Purchaser has paid a deposit of INR 5 crores (approximately Euro 0.625 million) in order to provide the Purchaser with an additional six months to complete the closing, which may be extended by another month upon payment by the Purchaser of an additional deposit of INR of 5 crores. As of this date, the Purchaser has deposited a total of INR 15 crores (approximately Euro 1.875 million) (the "Deposits").
b. If the Purchaser is unable to complete the closing within the aforesaid time periods, then the parties will mutually appoint an international real estate consulting firm for the purpose of identifying a third-party buyer within a period of six months.
c. If the Purchaser is unable to complete the closing and no third-party buyer is found within the aforesaid time periods, both the JDA and SPA shall be terminated, subject to the Purchaser receiving the Deposits. However, the Purchaser will not be entitled to reimbursement of expenses incurred by it under the JDA.
d. Any final price received from a third-party buyer above the Consideration will be shared 67% by the Purchaser and 33% by EPI. The Consideration is subject to adjustment with respect to the Deposits and the existing cash in the SPV.
e. The Consideration will be remitted in Euro at the base rate already agreed upon by the parties. Foreign exchange loss arising due to change in conversion rate from INR to euro will be borne by the Purchaser and gain will be credited to the account of EPI.
f. The parties withdraw the arbitration proceedings and other notices.
At this stage, there is no certainty that the SPA closing will occur.
Update on the sale of the Company’s indirect shareholdings in the Dambovita Center Project (“CASA RADIO”):
On February 11, 2019 the Company signed a non-binding Letter of Intent ("LOI") with AFI Europe N.V. (the "Purchaser", and together with the Company, the "Parties"), for the sale of its entire indirect shareholdings (75%) in the Casa Radio Project, for a maximum consideration of €60 million, subject to the fulfilment of certain conditions. The Parties have agreed to extend the time period for executing the Pre-Sale agreement for the sale of the Project until no later than July 5, 2019.
On 3 July 2019, the Company’s wholly owned subsidiary Dambovita Center Holding B.V (“Dambovita NL”) as seller, the Company as guarantor and AFI Europe as buyer entered into a pre-sale agreement for the sale of the shareholding in Dambovita Center S.R.L (“Dambovita RO”) (Pre-Sale Agreement). Below are the principal changes made in the Agreement compared to the non-binding Letter of Intent, as detailed in the Company announcement dated February 11, 2019:
• The Purchaser's due diligence review period was extended to no later than September 5, 2019, following which, subject to the satisfaction of the condition’s precedent, the Parties will have 15 months to execute a share purchase agreement (the "SPA").
• The payment schedule was changed as follows:
Stage Payment Amount Comments
(upon satisfactory completion of due diligence) EUR 200,000 The down payment is refundable upon the occurrence of any of the following (i) cancellation of the PPP Agreement; (ii) initiation of SPV’s dissolution due to negative equity requirements; or (iii) the existence of elements of criminal investigation against the SPV beyond the information disclosed to the Purchaser as of this date; or, if against the SPV’s directors or employees, in case such elements would trigger a significant impact on the Project.
Execution of the SPA EUR 20,000,000
Issuance of Building Permit for Phase 1. EUR 22,000,000 "Phase 1" was defined as the development of any of the elements of Component A under the PPP Agreement, i.e., a shopping mall and/or an office park, excluding the development of the Public Authority building.
Obtaining of all permits required for the operation of any of the components (buildings) of Phase I, namely for the office building or for the shopping mall, including the fire permit and the operation permit. The balance between the Purchase Price and the payments made by that time (see above).
The Purchase Price is defined in the Agreement as Euro 60 million minus 75% of the SPV’s liabilities computed based on the closing accounts (as defined in the Agreement) and excluding the inter-company loan granted to the SPV; plus 75% of the SPV’s available cash and other current assets as shown in the closing accounts (as defined in the Agreement) and minus, if applicable, the amount agreed upon by the Parties to be reduced from the Purchase Price if the 49-year lease period shall commence before 2012.
• The conditions precedent for the consummation of the Transaction were broadened to include also the receipt of the Company's shareholders' and bondholders' approval for the Transaction as well as no material adverse change, as defined in the Agreement.
• The Company undertook to indemnify the Purchaser against all losses, charges, costs and expenses (including reasonable attorney fees) which the Purchaser sustained or incurred by reason of breach of the warranties set forth in the Agreement.
On July 30, 2019 at the bondholders’ meeting of Bonds series A and Bonds Series B it was decided to authorize the company to enter into an agreement and execute the transaction contained therein, despite the Company's failure to comply with the minimum coverage ratio (as defined in the Trust Deed) and notwithstanding the provision of section 4.6 of the Trust Deed. In addition, an extraordinary general meeting of the Shareholders of the Company held on 29 August 2019 approved the transaction as detailed in the Notice of EGM.
There can be no certainty that the SPA will eventually be executed and/or that the Transaction will be consummated as presented above or at all. For additional detailed information refer to Note 6 in the condensed consolidated financial statements.
Update on disposal of land plot in Miercurea Ciuc, Romania:
Further to the Company's announcement dated October 17, 2018 regarding signing the pre-agreement for the sale of land plot in Mercuria Ciuc, Romania, the Company grant an option for the purchase of the Plot till mid-April 2019 for a total consideration of EUR 0.11 million which was paid in installments. In March 2019, following negotiations with the purchaser, the parties agreed that (i) the signing date of a definitive agreement will be postponed by 3 months to mid-July 2019, (ii) the receipt of non-refundable advance payments of EUR 250,000 in two tranches by the end of April 2019, and; (ii) the sale price will be increased by EUR 30,000. The company signed a definitive sale agreement after the balance sheet date.
Disposal of land plot in Lodz, Poland:
On June 13, 2017, the Company announced that it has signed a preliminary sale agreement for the disposal of a 13,770 sqm plot at its second land holding in Lodz, Poland, (representing 22% of this holding) to a retail developer, for EUR 1.15 million. As part of the agreement, the purchaser paid an immediate installment of EUR 0.035 million followed by an installment of EUR 0.073 million paid in 2018 after obtaining environmental permit for investing in the access road to the plot.
During February 2019 the Company has signed conditional sale agreement for which the remaining balance less 50% of the sum invested in the road (up to maximum amount of circa EUR 0.19 million) will be paid once the final agreement is signed after the municipality confirms that it will not exercise pre-emptive rights.
On March 26, 2019 the Company has signed definitive sale agreement, under terms of which the purchaser paid the rest of consideration (circa EUR 0.84 million) by April 2019.
Preliminary Agreement for the sale of remaining land plot in Lodz, Poland:
In May 2019, the Company has signed a Preliminary Agreement (the "Preliminary Agreement") for the sale of its remaining holdings in the Plot (circa 47,860 sqm) to a local developer (the "Purchaser") for a total gross consideration of approximately EUR 1.10 million (the “Consideration").
Under the terms of the Preliminary Agreement: (i) a conditional sale agreement will be signed until September 3, 2019 (the "Closing Date") following due diligence. The Purchaser has the right to withdraw from the transaction until the Closing Date; (ii) a definitive agreement will be signed not later than October 15, 2019 ; (iii) 10% of the Consideration was deposited on notarial deposit upon signing the Preliminary Agreement and will be released upon signing a definitive agreement following municipality’s confirmation that it will not exercise preemptive rights (the "Confirmation"); (iiii) 40% of the Consideration will be paid upon signing a definitive agreement and subject to obtaining the Confirmation; and (v) 50% of the Consideration will be paid not later than December 10, 2019. This payment will be secured by a mortgage on the Plot.
Motion to reveal and review internal documents:
In March 2018, a Shareholder of the Company has filed a motion with the Financial Department of the District Court in Tel-Aviv to reveal and review internal documents of the Company and of Elbit Imaging Ltd., with respect to events surrounding certain agreements executed in connection with the Casa Radio Project in Romania and the sale of the US commercial centers (the "Motion"). Such events were previously announced by the Company and are detailed in notes 5(4)(d) and 17(5) of 2018 annual financial statements. In July 2018, the Company filed its response to the relevant court. On January 13, 2019, a Court hearing was held following which the judge decided that the board of directors of each of the Company and Elbit Imaging Ltd. would examine the relevant facts and decide whether or not they should file a lawsuit against any of its officers. The Company and Elbit Imaging Ltd. are required to submit their conclusion to both the court and the plaintiff not later than September 5, 2019 (following an agreed upon extension to the original date of submission) and thereafter the plaintiff will notify the Court whether or not he wishes to continue with the Motion.
Request to reveal documents:
An indirect subsidiary of the Group in Romania (which holds plot of land outside Bucharest) received a request from Romanian authorities to reveal documents regarding the years in 2007-2011 as part of an ongoing investigation procedure. The company has submitted all relevant documents in respect of the said years. During 2019 another indirect subsidiary of the group (which was liquidated) was ordered to a court hearing.
A criminal investigation carried out regarding the commission of the money laundering and fiscal evasion offenses against legal representative (directors) of certain companies in which the company had indirect holdings through JV in the past. The prosecutor closed the case and the chief prosecutor denied the complaint of National Agency for Fiscal Administration as tardy. Against the prosecutor's disposition to close the case, the National Agency for Fiscal Administration filed a complaint in court. The court hearing has been postponed to October 3, 2019.
Interest and principal Payments:
Following Note 8(c) to the consolidated financial statements in which the company announced it will not meet its principal repayment due on December 31, 2018 as provided for in the settlement agreement with Series A and Series B Bondholders from 11 January 2018 (the “Settlement Agreement”), the bondholders approved the deferral of payment to July 1, 2019 and the company paid principal of circa EUR 250,000 and Penalty interest on arrears of EUR 150,000 on February 2019.
In addition, during June 2019 the bondholders approved the deferral of the full payment of principal due on July 1, 2019 and of 58% ("deferred interest amount") of the sum of interest (consisting of the total interest accrued for the outstanding balance of the principal, including interest for part of the principal payment which was deferred as of February 18, 2019, plus interest arrears for part of the principal which was fixed on 18.2.2019 and was not paid by the company and all in accordance with the provisions of the trust deed; "the full amount of interest"), the effective date of which is 19.6.2019, and the payment date was fixed as of 1.7.2019. The company paid on the said date a total amount of circa EUR 1.17 million EUR of which is only 42% of the full amount of interest.
Key highlights since the period end:
Disposal of land plot in Miercurea Ciuc, Romania:
On July 11, 2019, the Company has signed a definitive agreement for the sale (on an "as is" basis) of its plot, for a total amount of EUR 1.58 million (out of which EUR 0.36 million has already been received as non-refundable advance payments as of balance sheet date).
On January 26, 2017, the Company signed a binding share purchase agreement with BIG Shopping Centers Ltd ("BIG"), for the sale of the SPV holding Belgrade Plaza shopping and entertainment center. The final agreed value of Belgrade Plaza, which comprise circa 32,300 sqm of GLA, will be calculated based on a general cap rate of 8.25% as well as the sustainable NOI after 12 months of operation, which the Company estimated in the range of EUR 6.2-6.5 million per annum.
Further installments will be due to the Company during the first year of operation based on this 12-month figure. The NOI will be re-examined again after 24 months and 36 months of operation, which may lead to an upward adjustment of the final purchase price. The Company did not record a gain from expected future purchase price adjustments at the sale date.
During July 2019 (the second adjustment date) the Second purchase price adjustment was examined and accordingly no additional proceed was made.
On July 20, 2019, BIG paid EUR 108,375 for the stands and signage at the Belgrade Plaza.
In addition, BIG further informed the Company that they intend to hold an additional EUR 1 million until an orderly engineering examination of the mall's technical conditions is completed as part of the final Price adjustment to be performed in May 2020. The Company is currently evaluating its options regarding BIG's intention to hold the EUR 1 million which was not recorded in the consolidated financial statements due to uncertainty related to receipt of such amount.
Sale agreement of plot in Bangalore, India:
Refer to the above section regarding the SPA signed and steps taken by the Company.
On July 11, 2019, Company announced that its Romanian subsidiary had signed a binding agreement to sell land in Romania (refer to Note 8(d)), and that the Company would use part of the proceeds now received by it EUR 0.75 million (hereinafter: "the amount payable"), in order to make a partial interest payment to the bondholders (Series A) and (Series B) issued by the Company. The payment required changes in the repayment schedule and amendments of the trust deeds which was approved unanimously by the Bondholders. The amount payable was paid on August 14, 2019 and reflects 30% of accrued interest as of that date.
Dutch statutory auditor
The Company has not yet been in the position to engage a Dutch statutory auditor for the book year 2019, which is due to the fact that in the Netherlands, the choice of audit firms that are entitled to audit public interest entities (the Company qualifies as such an entity) is extremely limited. The Company has done all efforts to engage an auditor and has even sent a formal letter to the Dutch Ministry of Finance to get out of the deadlock situation. At this moment it is not yet clear what the outcome will be.
Commenting on the results, Executive Director Avi Hakhamov, said:
“Our main goal has continued to centre on asset disposals with the aim of satisfying our obligations to our stakeholders, as reflected by signing of the Casa Radio Pre-Sale Agreement as approved by the bondholders and our shareholders, signing SPA to sell Chennai, considerable efforts that are made to collect the proceed from Bangalore sale and signing preliminary agreements for rest of the plots in CEE. This remains our absolute priority for the second of half of the year.”
“After a long and challenging tenure, please be informed that I intend to retire at the end of the year. I am pleased and privileged to have devoted 13 years to Plaza in a variety of roles. I want to express my gratitude to all of my colleagues at Plaza during this period, while I also want to thank the Board for giving me the opportunity to take the helm”.
For further details, please contact:
Avi Hakhamov, Executive Director
+ 361 6104523
Notes to Editors
Plaza Centers N.V. (www.plazacenterxs.com) is listed on the Main Board of the London Stock Exchange, as of 19 October 2007, on the Warsaw Stock Exchange (LSE: “PLAZ”, WSE: “PLZ/PLAZACNTR”) and, on the Tel Aviv Stock Exchange. Plaza Centers has been active in real estate development in emerging markets for over 23 years.
This press release may contain forward-looking statements with respect to Plaza Centers N.V. future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Plaza Centers N.V. and information currently available to the company. Plaza Centers N.V. cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. Plaza Centers N.V. has no obligation to update the statements contained in this press release, unless required by law.
During the first half of 2019 the management’s focus has been on executing preliminary agreement for the sale of Company’s holding in Casa Radio project, signing SPA for the sale of Chennai project in India, receive cash proceed from the purchaser of Bangalore project, disposals of plots of land in cee and cost reductions and repayments to its bondholders. This disposal and cost cutting process is evidenced by the sale of plot of land in Poland, preliminary agreements for sale of plots left in CEE and significant reduction of administrative expenses. The repayments to its bondholders is evidence by certain payments during the period and after balance sheet date following asset sales.
In addition, following several years of efforts to promote the development of the Casa Radio project, a number of serious proposals were received during the course of 2018 from serious and experienced real estate investors which were examined by management and the board. The management and the board of directors came to the conclusion that the proposed price and terms of LOI are optimal and reasonable considering the Company's current status and decided to sign a LOI with AFI Europe in 2019 followed by a pre-sale agreement signed after balance sheet date, and which was approved by the Company’s bondholders and shareholders. This is a significant milestone in efforts to promote the development of the project.
In India, the Company focus its efforts to bring cash flows from Bangalore project in accordance with the signed sale agreement simultaneously with steps taken to protect its rights due to default of the purchaser. In addition the company signed SPA for the sale of its 50% stake in a 74.7-acre plot in Chennai, India with cash deposit.
As a result of this activity, our total portfolio now comprises five assets in three countries, including one plot in Poland, two plots in Romania and two plots in India (under JV with Elbit).
Over the coming months, the Company will maintain its focus on and commitment to the portfolio rationalisation and continuous deleveraging of the balance sheet.
During the first half of the year, Plaza recorded a €10.9 million loss attributable to the shareholders of the Company. This is a 12% increase compared to the losses reported in the first half of 2018 (€9.8 million).
Total result of operations excluding finance cost was loss of €0.5 million in 2019 and €5.5 reported in the first half of 2018. In 2018 losses were generated mainly from write down of trading properties and in 2019 a partial reversal of write down cause an increase of the value of the plot in Romania in amount of €0.5 million.
The consolidated cash position as at 30 June 2019 was €0.6 million (31 December 2018: €1.4 million) and the current cash position is circa €1.1 million.
Liquidity & Financing
Plaza ended the period with a consolidated cash position of circa €0.6 million, compared to €1.4 million at the end of 2018. An additional cash balance of EUR 0.15 million (Plaza Part) is being held in its 50% subsidiary (“EPI”).
As at June 30, 2019 the Group's outstanding obligations to bondholders’ total €87.5 million.
Information concerning the Group's obligations and commitments to make future payments under contracts, such as debt agreements in the 18 months starting 1 July 2019, is aggregated in the following table.
Total Payment Due by period
Liquidity Requirements Within 1 year
Within 1-1.5 year
Bonds including current portion and interest (*) 93,638 -
General & administrative 1,700 800
Total liquidity requirements 95,338 800
Total Sources (**) 3,830 6,500
Total surplus (deficit) (91,508) 5,700
(*) Bonds payment schedule presented according to trust deeds. An accrued interest amount of Circa EUR 0.75 million was repaid by the date of approval of these interim condensed consolidated financial statements of this press release following the balance sheet date.
(**) The Company expects to increase the amount of its liquid balances during the 18 months star