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Fri 08 Aug 2010REO stops paying interest due to creditors

TREASURY Holdings-backed property group Real Estate Opportunities (REO) will not pay interest due to a group of its creditors at the end of the month as it is in talks to renegotiate part of its debt and float off one of its bigger assets, Battersea power station in London.

REO is in talks with toxic loans agency Nama, to which it owes €997 million, Lloyd’s Bank and holders of its unsecured loan notes, and separately with a committee representing holders of its convertible unsecured loan stock and zero dividend preference shares, regarding a restructuring of its finances.

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