The conflict between holders of defaulted bonds of Russian Standard Ltd, controlled by businessman Rustam Tariko, and representatives of the issuer has worsened. Proposed options for restructuring, investors found unacceptable and intend to collect a pledge - 49% of shares of the bank "Russian Standard", applying to the London International Arbitration Court (LCIA). The true goal of investors is to urge Mr. Tariko to a more constructive dialogue, experts say.
Russian Standard Ltd, by notification of February 16, invited holders of bonds, which defaulted last year, on March 6 to an "informal meeting" in London, the issuer said to investors. It says that at this meeting the issuer wants to discuss with the bondholders the restructuring, offering two options. The first - 25% of the face value of money. The second - 20% of the nominal plus the so-called conditional right to the value of shares, namely - 49% of the bank "Russian Standard", which belongs to Rustam Tariko. In addition, payments will depend on the financial performance of the bank.
We are talking about the papers, holders of which Russian Standard Ltd on October 27, 2017 (formally October 30) did not pay a coupon for $ 451 million with repayment in 2022, thereby allowing default. 49% of shares of the bank "Russian Standard" are in pledge for this issue.
This is the first public offer to bondholders of Russian Standard Ltd from the moment of default. "Rustam Tariko's explanations are actually that" why should I spend money paying off my debts? "," Representative of a group of Eurobond holders Eric Kraus told Kommersant at the end of last year (see "Kommersant" on November 27, 2017 ).
The offer of Russian Standard Ltd representatives of holders of 27.5% of bonds in an interview with "K" was called "unacceptable" and even "evil joke" and "silly game". "There are no grounds for negotiations," the statement says. According to the interlocutors of "Kommersant", investors will continue to "fight", that is, to seek commensurate with their losses of payments on the part of the issuer or enforcement of collateral. They said that none of this group of investors will attend the meeting on March 6, and the law firm Latham & Watkins is preparing a lawsuit in the LCIA for their benefit.
Nevertheless, the representative of the group "Russian Standard" Oleg Egorov expressed surprise at such statements of bond holders. "We learned about the existence of an initiative group of investors a few months ago from media reports and do not know which of the bondholders is part of it," he said. Mr. Yegorov assured that representatives of the initiative group had not attempted to contact the "Russian Standard" group in recent months. Although at the end of last year, Mr. Yegorov declared "constructive negotiations" with investors, he now claims that they are not familiar with them. "We hope that we will have an opportunity to get acquainted with these holders in London on March 6 and better understand their intentions," he stressed. "Interest in the proposal is high, applications for participation in the meeting are coming, we are registering them and preparing for the meeting."
As for the prospects of bondholders in the dispute with the "Russian Standard", they are high, lawyers say. "The process is pretty obvious. Debt is not paid. There is a pledge, and if there are no pitfalls, then it is not difficult to reclaim it ", - the lawyer of the company" Ilyashev and partners "Dmitry Konstantinov believes. However, in his opinion, if there is a constructive proposal, bond holders will agree to new terms of performance of obligations. "The interest of investors to obtain shares of the bank is rather controversial - it is a complex asset. Most likely, the lawsuit is needed in order to urge Mr. Tariko to a more constructive dialogue, "said the lawyer.
Russian Standard Ltd, by notification of February 16, invited holders of bonds, which defaulted last year, on March 6 to an "informal meeting" in London, the issuer said to investors. It says that at this meeting the issuer wants to discuss with the bondholders the restructuring, offering two options. The first - 25% of the face value of money. The second - 20% of the nominal plus the so-called conditional right to the value of shares, namely - 49% of the bank "Russian Standard", which belongs to Rustam Tariko. In addition, payments will depend on the financial performance of the bank.
We are talking about the papers, holders of which Russian Standard Ltd on October 27, 2017 (formally October 30) did not pay a coupon for $ 451 million with repayment in 2022, thereby allowing default. 49% of shares of the bank "Russian Standard" are in pledge for this issue.
This is the first public offer to bondholders of Russian Standard Ltd from the moment of default. "Rustam Tariko's explanations are actually that" why should I spend money paying off my debts? "," Representative of a group of Eurobond holders Eric Kraus told Kommersant at the end of last year (see "Kommersant" on November 27, 2017 ).
The offer of Russian Standard Ltd representatives of holders of 27.5% of bonds in an interview with "K" was called "unacceptable" and even "evil joke" and "silly game". "There are no grounds for negotiations," the statement says. According to the interlocutors of "Kommersant", investors will continue to "fight", that is, to seek commensurate with their losses of payments on the part of the issuer or enforcement of collateral. They said that none of this group of investors will attend the meeting on March 6, and the law firm Latham & Watkins is preparing a lawsuit in the LCIA for their benefit.
Nevertheless, the representative of the group "Russian Standard" Oleg Egorov expressed surprise at such statements of bond holders. "We learned about the existence of an initiative group of investors a few months ago from media reports and do not know which of the bondholders is part of it," he said. Mr. Yegorov assured that representatives of the initiative group had not attempted to contact the "Russian Standard" group in recent months. Although at the end of last year, Mr. Yegorov declared "constructive negotiations" with investors, he now claims that they are not familiar with them. "We hope that we will have an opportunity to get acquainted with these holders in London on March 6 and better understand their intentions," he stressed. "Interest in the proposal is high, applications for participation in the meeting are coming, we are registering them and preparing for the meeting."
As for the prospects of bondholders in the dispute with the "Russian Standard", they are high, lawyers say. "The process is pretty obvious. Debt is not paid. There is a pledge, and if there are no pitfalls, then it is not difficult to reclaim it ", - the lawyer of the company" Ilyashev and partners "Dmitry Konstantinov believes. However, in his opinion, if there is a constructive proposal, bond holders will agree to new terms of performance of obligations. "The interest of investors to obtain shares of the bank is rather controversial - it is a complex asset. Most likely, the lawsuit is needed in order to urge Mr. Tariko to a more constructive dialogue, "said the lawyer.
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