Restructuring Plan and Delays Due to Legal Actions by RE24

Dear Investors,
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We would like to inform you about the current status of the Moldovan projects. As of today, the situation is as follows:

On June 30, 2023, a creditors' meeting for Metropolis City SRL was held, during which the company's restructuring plan was approved. The approved plan protected the interests of investorshugely, and moreover, on the initiative of the management of Metropolis City SRL, all restructuring procedure expenses were covered by Metropolis City SRL. It should be noted that under Moldovan law, part of the expenses, amounting to 2% of the debt, could have been imposed on creditors, i.e., on you. The management of Metropolis City SRL adheres to previous declarations and intends to return all the funds received from investors.
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Despite the extremely favorable conditions, RE24, for reasons unknown to us, initiated a series of lawsuits, including the suspension of the approved plan’s implementation, but the most absurd were the claims challenging the recognition of other creditors’ claims. Such actions by RE24 were a serious mistake, as they delayed the implementation of the restructuring plan and postponed the return of invested funds.

On May 14, 2024, the final decision on these lawsuits was made, and the restructuring plan came into effect. According to this plan, the debt repayment period will start in a year. And yes, if RE24 had not filed unreasonable lawsuits and wasted your money on lawyers, the repayment period would have already started.

Although, according to the restructuring plan, Metropolis City SRL must return all funds received from creditors within three years, we are, as before, ready to consider the possibility of faster debt repayment. Unfortunately, we are aware that the RE24 management, after receiving funds from their subsidiaries for unrealized projects, did not return these funds to investors. We are not confident that all the funds previously transferred from the Kirsan group of companies were returned to investors. Accordingly, we would not like the situation where, after the further return of funds, all or part of these amounts remain in RE24’s accounts, and RE24 claims on their website or social media that Kirsan did not fulfill its obligations, the same incorrect claims they have made regarding other projects.

Earlier repayment is possible under two scenarios:

1. The conclusion of assignment agreements between the investor, RE24, and Metropolis City SRL, and the appointment of an official representative of the investors to sign the loan repayment schedule from Metropolis City SRL directly to the investors.
2. The conclusion of assignment agreements between the investor, RE24, and Metropolis City SRL, and the transfer of real estate to the investor(s) in the amount of their investments.

The projects of Metropolis City SRL related to RE24 include:

• Metropolis 4A development loan,
• Metropolis 4D development loan,
• Metropolis business apartments.

We also inform you that on June 7, 2024, a creditors' meeting for Kirsan Com SRL was held, during which the company's restructuring plan was approved. The terms of repayment are the same as for Metropolis City SRL, and the start of repayment depends on the actions of RE24. However, unlike Metropolis City SRL, RE24 filed a lawsuit demanding the initiation of bankruptcy proceedings against Kirsan Com SRL. The rationale behind this lawsuit is unclear to us, and if it is granted, Kirsan Com SRL's obligations to repay debts will be removed, and it is unlikely that the debts will be repaid, and if they are, it will not be in full. Such actions by RE24 could significantly worsen the situation, as initiating bankruptcy proceedings hinders the fulfillment of obligations to creditors.

These actions by RE24 are a bad signal in terms of management and raise questions about the competence and responsibility of their management. Furthermore, filing such lawsuits without prior agreement with investors whose funds RE24 manages is a violation of their obligations and management standards. The regulations of RE24 should stipulate that any significant actions, especially those that may affect the return of investments, must be agreed upon with the investors.

The projects of Kirsan Com SRL related to RE24 include:
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• Green Park Home residential.

These projects are an important part of our efforts to develop and improve living conditions in Moldova. Your cooperation and understanding in this situation are extremely important for the successful completion of these projects