In a recently issued press release, Orascom Hotels and Development announced that it signed an agreement for the rescheduling of loans worth EGP 2.05bn, after delaying repayment of loan installments for three years and postponing interest on premiums to the end of the fiscal year 2017.

The press release said the Commercial International Bank (CIB) has been working to coordinate between lenders to Orasocom Hotels and Development, namely Banque Misr, the National Bank of Egypt, Ahli United Bank, Al Ahli Bank of Kuwait, National Bank of Abu Dhabi, and HSBC.

CIB has also rescheduled the medium-term loans for the company from lenders, which include HSBC, the Arab African International Bank, Al Ahli Bank of Kuwait, and the Export Development Bank of Egypt.

The company noted that Zaki Hashem and Partners would provide legal advice to mitigate any legal issues the rescheduling would create.

The agreement includes the payment of EGP 300.4m of the total short-term facilities estimated at EGP 1.08bn and rescheduling of the residual value amounting to EGP 781.6m under one loan for a period of eight years.

The agreement also includes the payment of EGP 133.7m of the total short-term loans amounting to EGP 1.40 and rescheduling the remainder amount of EGP 1.26bn over a seven-and-a-half-year period.