Debt for equity swap at Cora

Romania Hypermarche, the company managing Cora hypermarket, will increase its share capital by 20 million euros, by converting into equity its debt to its majority shareholder, Delparro BV. The debt was accumulated from three loan contracts. According to the company’s representatives, the capital inflow will support investments in the construction of the second Cora hypermarket in Bucharest. The new hypermarket is due to be opened in Lujerului area in 2005. The first Cora store was opened on the Romanian market in late September 2003, the earmarked investment standing at 50 million euros. Cora representatives estimate annual turnover worth about 100 million euros to be derived from operations carried on the Romanian market. Last year, Romania Hypermarche registered turnover worth above 1,200 billion ROL (about 32 million euros at the average exchange rate announced by NBR for 2003) and losses of 240 billion ROL (6.4 million euros). Several months ago, the entire Cora management in Romania was replaced for reasons yet to be revealed. Investments planned for Romania are a little behind schedule.