The initiative group of creditors, which collected 25% of the issue of default Eurobonds of Russian Standard Ltd Rustam Tariko, demanded that the company immediately pay off the entire issue. Investors intend to withdraw the pledge on securities - 49% of the bank "Russian Standard" - and sell it at the best price, said in the statement of the group.
The default on securities for $ 545 million Russian Standard Ltd admitted back in October 2017, without paying a coupon. The company offered the holders two options for debt restructuring: either the redemption of securities at 25% of the nominal value, or 20% of the nominal plus the right to receive payments on shares of the bank "Russian Standard", which will be tied to its financial results. Then the representative of the Russian Standard explained that the proposed options are more advantageous than withdrawal of collateral: 49% of shares of the bank "Russian Standard" stand from $ 50 million to $ 70 million, and 25% of the bond value - $ 136.3 million. However, the initiative group refused to restructure.
The initiative group has taken the first step to withdrawing and implementing the bond pledge - it collected more than 25% of the issue and sent instructions to the trust, Tertychny Agabalyan partner Ivan Tertychny says, the process is long and complicated: the mortgagor can obstruct every step of creditors, Tertychny adds.
The shareholder has limited rights on the pledged 49% to vote on these shares, he must seek permission from the trust of the issue, reminds the initiative group. Otherwise, the trust can demand compensation for losses.
Notification of a loss when planning to vote for a pledged stake in a bank is a contractual obligation that arises after a default occurs, Tertychny says. "In the event that a shareholder requests permission to vote for a pledged stake, the trustee will be required to delegate the resolution of this matter to the bondholders. And the holders will not only have to instruct the trusts, but also provide a guarantee for the payment of his services, "he explains.
The annual general meeting of shareholders of the bank "Russian Standard" is scheduled for June 29.
The rights to the pledged package are all also owned by the Russian Standard group, says Rustam Tariko, representative of Roust Holding. The process of collecting the collateral (if it ever will be launched) will be very lengthy, he warns: investors should provide additional financial guarantees and legal protection to the trust before this procedure is started. In addition, the collection of collateral is a very lengthy process, as it is regulated by the documentation of bonds and involves the conduct of a trial in Russia, as well as obtaining the necessary regulatory approvals, the representative of the holding indicates.
The notice of debt repayment is technical and formal, he insists: investors could demand it in October 2017. At the same time, negotiations with the main bondholders are continuing, the representative of the holding points out: Russian Standard in the near future wants to launch an official voting process on restructuring among bondholders.
Split among investors
Among the holders of defaulted bonds of Russian Standard Ltd there was a split: in addition to the initiative group, there are other bondholders with a different position, told the "Vedomosti" two bondholders of the company and a person close to one of the holders.
It's not easy to get into an initiative group (you need to own $ 10 million or more securities), in addition, its actions are not transparent, says a representative of Miriad Rus, which collects the second group. Its goal is to achieve the most profitable option for repaying funds to holders of defaulted bonds, he says: "We believe that the goal for the holders should be the same and the actions should be open - both for other holders of securities and for the issuer." What percentage of the issue was collected, the representative of Miriad Rus did not disclose, noting that now there is a process of verification of bondholders.
According to him, the group wants to see the bank "Russian Standard", instead of the Russian Standard, as a result of restructuring by the issuer of bonds. The papers, which are now disputed by the holders, appeared in 2015 when, as a result of losses, the bank "Russian Standard" could not service two issues of subordinated eurobonds for $ 350 million and $ 200 million. Then the holders of these securities agreed to a restructuring, payment in the amount of 18% of the nominal value, as well as new securities, the issuer of which became already Russian Standard Ltd.
The representative of Miriad Rus believes that the return to ensuring that the bank is responsible for the obligations is the best scenario for the holders of defaulted bonds. To start the process of acceleration, the initiative group took four months, he complains.
The presence of two opposing groups of creditors may delay the withdrawal of bond on bonds, Tertychny warns: "If trusts receive conflicting instructions from two groups that have collected 25% of the issue, they will have to hold a general meeting of the bondholders. There, the decision on the actions of the trust will be decided by a simple majority of votes. "