Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Orco Tumbles Most on Record as Bank Calls for Loan Repayment

Orco Property Group SA slumped the most on record as a creditor demanded a loan repayment from the unprofitable developer of real estate in central Europe.

The stock fell 24 percent to 0.71 euro in Paris, the steepest drop and the lowest price since Orco began trading in 1991, valuing the company at 81.3 million euros ($112 million). Turnover was almost 11 times the three-month daily average.

A financing bank terminated a facility for Orco’s Zlota residential project in Warsaw and demanded loan repayments of $83 million be made within 30 days, Luxembourg-registered Orco said in a statement late yesterday. The company will sell “liquid assets” to help honor the obligation, it said.

“There is no chance they could sell even the most liquid real-estate asset in just 30 days, and if they did it would be at a huge discount,” Tomas Mencik, an analyst at Cyrrus AS brokerage in Brno, Czech Republic, said by phone today.

Orco’s net loss rose to 227 million euros, almost triple its current market value, from 42 million euros in 2012 as the company booked 193 million euros of writedowns, according to a March 28 earnings statement. Asset sales are needed to stem “critical liquidity risks” while a loss of majority control in its profitable Orco Germany SA unit earlier in March will weigh on future earnings, the developer said.

The company’s secondary listing in Prague slid 21 percent to 19.9 koruna at the close today.

“I believe Orco is heading for liquidation,” Miroslav Frayer, an analyst at Komercni Banka AS in Prague, said by e-mail today. “A delisting will probably happen fairly soon.”

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.