25.-
OTHER CURRENT LIABILITIES
The composition of this item at 31 December 2013 and 2012 is as follows:
Thousand euros
2013
2012
Outstanding remuneration
28,687
28,836
Indemnity for the early termination of the lease arranged with Hotel Buhlerhöhe (Note 18)
2,936
2,936
Corporate restructuring provision inMexico
2,500
-
Rent reviews
1,566
1,368
Provision for Los Cortijos refurbishment expenses
682
1,008
Interest rate derivatives financial intruments (Notes 18 and 19)
59
2,607
Share-based remuneration scheme of shares 2007-2013 (Notes 18 and 19)
-
40,344
Other creditors
2,165
2,942
38,595
80,041
In November 2013 the debt of the interest rate hedging derivatives arranged by the Group company NH Finance, S.A. (Notes 18 and 19).
Also, in November 2013 the Group settled the debt of the share-based remuneration scheme approved inMay 2007 (Notes 18 and 19).
26.-
THIRD-PARTY GUARANTEES AND CONTINGENT ASSETS AND
LIABILITIES
Financial institutions had granted surety to the Group for an amount totalling EUR 21.68 million (31 December 2012: EUR 23.42 million) which, in general terms,
guarantee the fulfilment of certain obligations taken on by the consolidated companies in the performance of their activities.
At 31 December 2013, the Group had taken out insurance policies to cover risks arising from damage to material goods, loss of profits and third-party liability. The
principal insured sufficiently covers the assets and risks mentioned above.
Undertakings with third parties
-
AGroup company currently acts as co-guarantor for a syndicated loan granted by two banks to the associated company Sotocaribe, S.L., which at 31 December
2013
had an outstanding principal of EUR 17,813 thousand, with final maturity in 2014.
-
The shareholders’ agreements onHarringtonHall Hotel Ltd. (the companywhich owns theHarringtonHall Hotel) and Losan Investments Ltd. (the company
which owns the Kensington Hotel) were respectively signed on 29 March 2005 and 10 March 2006 by NH Europa, S.A. and Losan Hoteles, S.L. (currently
Carey Property, S.L.). By means of these agreements, should the latter company receive a purchase offer for 100% of the shares in either of the companies at
a price deemed to be the market price, Losan Hoteles, S.L. (currently Carey Property, S.L.) may require NH Europa, S.A., which shall be obliged to accept, to
transfer its shares to the third party making the offer. However, NH Europa, S.A. shall have a preferential acquisition right on Losan Hoteles, S.L. (currently
Carey Property, S.L.) shares in Harrington Hall Ltd. and Losan Hoteles Ltd.
-
On 26December 2006 Sotogrande, S.A. entered into an agreement with the shareholders of Los Alcornoques de Sotogrande, S.L. whereby the former granted
the latter a series of put options on several of its land plots with a total joint surface area of 221,078 square metres. On 5 July 2013 a novation amending the
aforementioned shareholders’ agreement was signed, as well as a novation of the deed of sale of the two land plots initially transferred, whereby the latter
agrees to waive the aforementioned put options and agrees to sell the two land plots owned by Los Alcornoques de Sotogrande, S.L., allocating 78% of the
sale price thereof to cancelling the account receivable from the associate and the remaining 22%will be allocated to paying dividends to its shareholders after
having settled its debts. In this connection, the Group has reduced the value of this account receivable to its possible recovery value. If the land plots have not
been sold at 30 June 2018, the Group will be obliged to repurchase them at an amount equivalent to 78% of the market price, according to the most recent
appraisal report issued by the Group’s independent valuer.
-
On 1 December 2005, an agreement was reached with Intesa Sanpaolo S.p.A. for this company to acquire NH Italia S.r.l. share capital. In the agreement, a put
optionwas granted to Intesa Sanpaolo S.p.A. on the stake thus acquired fromMarch 2008 toMarch 2015. The price will be set at the fair value and determined
by an independent investment bank. The price shall be settled in NHHoteles, S.A. shares. The EUR 124 million investment made by Intesa Sanpaolo in NH
Italia, S.r.l., is booked under the “Minority interests” heading of the attached consolidated balance sheet.
-
On 25March 2009, Sotogrande, S.A. granted a sale option to the minority shareholders of Donnafugata Resort, S.r.l that represented 30%of the share capital.
On 20 October 2010, the shareholders of Compagnia Immobiliare Azionaria, S.p.A. and Repinvest Sicily, S.r.l. provided notification of their intention to
proceed to exercise the abovementioned sale option in part, in accordance with the agreement signed between the parties in March 2009. As a result of this
notification, an independent expert was entrusted with the task of valuing the company. Sotogrande, S.A. believes that the valuation this expert came up with
for the company was too high and clearly far off the real valuation; for this reason it initiated arbitration proceedings challenging the independent expert’s
report. On 26 October 2012 the arbitral tribunal issued an award in which it confirmed the valuation of the independent valuer. Sotogrande, S.A. lodged
an appeal against this award and the hearing has been set for 23 February 2016. On 15 November 2013, CIA and Repinvest Sicily filed a new arbitral claim
ordering Sotogrande, S.A. to pay EUR 9,900,000 plus EUR 11,451 plus interest, in accordance with the valuation stated in the aforementioned award (Note
18).
-
Within the context of operations in the Caribbean, an undertaking was made by the Parent Company as part of the Real Arena complex management
agreement to obtain a minimum return to guarantee coverage of the 35 million dollars obtained to finance construction of the hotel.
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
98
