LONDON (ShareCast) - (ShareCast News) - Clear Leisure updated the market on the ongoing legal wranglings surrounding its Mediapolis investment on Tuesday, confirming that the proposal of the receiver to Mediapolis as made to the Ivrea Court has now been approved by the court in the amount of €2,678,357.
The AIM-traded firm said the proposal stated that Clear Leisure 2017 - another wholly-owned subsidiary - holds a first charge over the land plot owned by Mediapolis.

It said that figure excluded part of the accrued interest claimed by the company on debt acquired from certain Italian banks in 2017, but which had not been accepted as part of the first charge.

That was due to a time limit on the number of years which interest can be accrued on the principal sum in bankruptcy claims.

Clear Leisure said the court approval meant that any proceeds from the disposal of the Mediapolis land, up to €2,678,357 - subject to deduction of costs of sale - would be payable to Clear Leisure 2017.

Not included in the first charge, but formally recognised by the court as due to Clear Leisure, was also unsecured debt amounting to €8,211,897, which comprised €2,715,475 of accrued interest due to Clear Leisure 2017 and €5,496,421 acquired by the company from Olivetti Multiservices.

"Due to the legal complexity of a valid transfer of a first charge whilst a company has been declared bankrupt, the transfer on the Ivrea Land Register of the first charge acquired from Olivetti remains pending," Clear Leisure's board explained.

"While a €3m debt claimed by the Ministry of the Economy position is still being assessed by the receiver, €165,718.53 of amounts due by Mediapolis to certain creditors have so far been ranked above unsecured creditors, but below the first charge.

"Thus, the current value of unsecured creditors approved by the court amounts to €8,749,860, of which €8,211,897 or 93.85% - which does not take into account the €3m debt claimed by the Ministry of the Economy which is still being assessed - is due to Clear Leisure 2017."

Clear Leisure said all proceeds from the disposal of the Mediapolis assets, after payment of the first charge of €2,678,357 and the €165,719 ranked above unsecured creditors - including certain fees of the receiver - would be distributed pro-rata to the unsecured creditors.

Creditors had 15 days to challenge the ruling, with regards to their own approved creditor position.

"The court confirmation of the receiver's proposal in favour of Clear Leisure 2017 Limited's first charge over the Mediapolis land, is a positive result which sets a floor for our rights," said CEO Francesco Gardin.

"Meanwhile, the company will pursue the final goal of obtaining clear ownership of the Mediapolis land, using its position as the largest creditor, which we have reached by buying debt at a discount of nearly 80% during 2016 and 2017."

Gardin said that, taking into account the interest accrued from the credits acquired, the discount was now calculated as being considerably higher than 80%.

Had that not been done, the company would currently have no rights over any funds invested into Mediapolis before July 2015, when the new board was appointed and adopted its new strategy to reduce the debt on its portfolio of Italian assets.

"Moreover, we are in the process of assessing additional debt positions acquired by Clear Leisure in 2016 and 2017, which are very likely to increase further the current approved unsecured €8,211,897 creditors position."

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