Page 80 - RusRPTJuly18

kept the rating on CreditWatch with negative implications, the agency said on June 13. O1 Group has been struggling to pay outstanding bonds . The Moscow Exchange recently marked the bonds as in default and transferred the notes of O1 Group Finans issuer to default trading mode. The group's owner Russian businessman Boris Mints and his family moved to London as he is struggling from contagion and losses in the wake of the collapse of his bank Financial Corporation Otkritie. "We believe that the likelihood of a change of control in O1 Properties is increasing following its parent company O1 Group's default on some of its debt and the exit of Goldman Sachs International from O1 Properties' share capital," S&P commented. There is a change-of-control clause in O1 Properties' $350mn Eurobond maturing in 2021, as well as in most of the company's secured loan covenants, the agency reminds.
Bondholders of $545mn worth of bonds secured by 45% of Russian Standard bank (aka Russky Standart) are demanding repayment ahead of schedule, RBC business portal reported citing the announcement of investors' committee, which consolidated over 25% of the issue that defaulted back in October 2017. Previously this year the bank has offered a restructuring deal offering to pay its bondholders 20% of the face value of its bonds plus a share of the bank’s profits. Apparently the investors' committee rejected the restructuring deal as it now said it intends to demand trustee start the procedure of selling 45% stake in Russian Standard to extract the best possible price. The bonds have already been subject to restructuring. In 2015, holders of two issues of subordinated eurobonds of the Russian Standard Bank – an issue of $350mn and $200mn maturing in 2020 and 2024, respectively – agreed to receive a cash payment of 18% of the nominal value, as well as new securities, when the bank first got into trouble. The bank finally defaulted on the bonds at the end of October 2017, after it missed a coupon payment.
RUSSIA Country Report July 2018 www.intellinews.com