The Microfinance Organization (IFC) "Domashnaya Money" allowed a technical default, without buying back the bonds put up for the offer in the amount of more than 800 million rubles. At the same time, the company said that it had decided not to fulfill its obligations under the offer of the bond issue, as the IFC estimates most of these securities as speculative investments. Experts are sure that by such actions the issuer completely undermined investor confidence.
On Thursday, IFC Domashnyaya Money disclosed information about the technical default on the issue of exchange-traded bonds at 1.25 billion rubles. Within the framework of the offer, bids were made for redemption at par value of more than 92% of the bond issue, which could entail financial difficulties for the issuer (see "Kommersant" dated April 26). The reason for default is the lack of cash in the amount of 840 million rubles.
In the IFC, "Domashnye money" indicated that they were ready to execute the offer. On the morning of April 24, the volume of bonds submitted for redemption amounted to 670.5 million rubles. By the end of the day, applications were filed for an additional 470 million rubles. The total number of applications was 1.14 billion rubles. As explained to "Kommersant" in the company, of them for the execution of the 26th day there were no bids for 300 million rubles.
However, "Domestic money" refused to buy this volume of securities. "Given that more than 700 million rubles. of the total amount the company estimates as speculative investments made within the first quarter of 2018 with quotations of 30-50% of the face value, it was decided not to fulfill the obligation on the offer of the bond loan, the statement of the company follows. - The redemption of bonds at face value in this situation The organization considers it unfair to other investors. " Transactions with bonds of this issue of "Home Money" on the minimum values (32% of the nominal value) were concluded on January 31. The total trading volume that day amounted to 13 million rubles, and prices ranged from 32% to 41.2% of the face value. In addition, almost all of March quotes held at 40% of the face value, the volume of trading amounted to about 130 million rubles. Subsequently, prices rose to more than 50% of the nominal value and until April 26 did not fall below this value.
Refusing to buy back the securities offered under the offer, the company allowed a technical default.
Within ten working days, she can redeem the papers presented for redemption at par value and avoid a real default.
If this does not happen, within 30 days the company must make a proposal on the restructuring of the issue to bondholders, which can be approved with the consent of more than 70% of them.
In "Home Money" they said that they are starting to work with KPMG to adjust their business development strategy, restructure their obligations and attract an investor. Within the set timeframe, the agent will be selected and a proposal to change the parameters of the bonded loan is submitted. According to Kommersant's information, Evgeny Bernshtam, the shareholder of the company, is currently seeking funds to execute the offer and is negotiating with a particular investor.
In case of reaching an agreement, the interlocutor of Kommersant, who is familiar with the situation, does not exclude that the company still chooses to maintain its business reputation and fulfill the offer in full.
However, experts believe that it is unlikely that they will manage to keep their business reputation "Domestic money". According to Aleksey Antonov, an analyst with IC "Alor Broker", bondholders have the right to present them for redemption, and the company must redeem them. "We need to understand the risks to investors who bought bonds, which are almost guaranteed default, at a price of 30-50% of the par value - they risked and risk all the money invested, and the difference between the purchase price and the face value is that premium on which they counted for risk, "he said." In such a situation, to say to investors that they are "speculators" is unprofessionalism, by that they have closed the opportunity to issue any papers and attract loans. " According to the CEO of Kharitonov Capital, Maxim Kharitonov, for a business model that a company operates, even a technical default can inflict irreparable damage and lead to bankruptcy, as investor confidence can be considered undermined.