FESCO agreed on the main terms of restructuring Eurobonds




FESCO agreed on the main terms of restructuring Eurobonds and signed an agreement on the definition of intent (Standstill And Lock-Up Agreement) with holders.

PJSC “VTB Bank” and its subsidiaries agreed with the ad hoc group of holders of Eurobonds maturing in 2018 and 2020, which own 47,34% of the finding in the appeal papers, the key terms of the debt restructuring and to ensure the implementation of further restructuring entered into an agreement on the definition of intent (Standstill And Lock-Up Agreement), said in a statement.

The terms of the restructuring include a one-time cash payment of $547,5 million subject to certain deductions specified in the agreement.

The restructuring is subject to the following conditions:

– The group successfully attracts investment in equity and / or debt financing in sufficient volume and

– Most holders of dollar-denominated bonds (holding not less than 75% of the outstanding dollar bonds (by value) and representing the numerical majority) support the restructuring in accordance with the conciliation procedure (Scheme of Arrangement) under English law.

The agreement is to facilitate the implementation of the restructuring through the conciliation procedure. In accordance with the terms of the agreement, holders of dollar-denominated bonds, in turn, will not take any action to enforce the breach of dollar-denominated bonds, and will strongly contribute to the implementation of restructuring. Each holder of dollar-denominated bonds that join the agreement until October 4, 2017, will be entitled to receive payment in accordance with the terms described in the agreement. If the terms of the agreement conditions, it is valid until October 31, 2017, and may be renewed.

The group offers to other holders of dollar-denominated bonds to accede to the agreement to provide for restructuring, which the Group considers as optimal and mutually beneficial solution for both holders of dollar-denominated bonds, and for the Group.

“The agreement is the result of successful negotiations with the ad hoc group that began after the Group in may 2016, has announced a strategic review of the capital structure due to the negative business impact of the macroeconomic situation in Russia and the devaluation of the ruble. The group believes that the Restructuring will reduce the debt burden of the Group to a sustainable level that will allow it to maintain operational competitiveness and ensure the future development of the business,” notes FESCO.



FESCO agreed on the main terms of restructuring Eurobonds 06.09.2017

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