SPV-company O1 Group Boris Mintsa, LLC "O1 group finance, on Thursday made a technical default on the issue of bonds worth 14 billion rubles. with redemption in April 2027. The company did not pay the fourth coupon for 357.7 million rubles, it follows from its message. The price of these bonds on Friday at the Moscow stock exchange was only 2.55% of the face value.
The reason for default is the lack of money on the settlement account "O1 group finance" in the amount necessary for payments, the company said. The guarantor for the fulfillment of obligations under these bonds is O1 Group Limited, it is said in terms of their issue. It says that in case of failure or improper performance of the "O1 group finance" of their bond obligations, their holders have the right to apply to O1 Group, which is also obliged to be responsible for the company's fulfillment of the obligations under the offer. The offer should be issued next week, May 8.
"Vedomosti" sent a request to the O1 Group with questions about technical default, bail, and also whether the company plans to offer bond holders a restructuring.
While it is a question of technical default and, perhaps, in the future the company will find a way to pay off with bond holders, says Pavel Mitrofanov, Managing Director for Corporate Ratings of Expert RA. Apparently, he continues, the group could not restore access to liquidity after a number of partner banks came under the control of the Central Bank within the framework of the reorganization. These banks have changed the policy of working with borrowers and, most likely, the limits for O1 have been closed, Mitrofanov explains, and the group could not find funds in other banks.
The "O1 group finance" has only five issues of exchange bonds for 87 billion rubles. One of the issues - placed in August 2017 for 40 billion rubles. - the company last year tried to restructure. She proposed to change the coupon rate, increasing it from the annual OFZ + 3% rate without capitalizing interest to OFZ + 7.5% with interest capitalization, a person close to "O1 group finance" told Vedomosti. However, in the voting on restructuring on September 15, only 9.2% of shareholders participated and the decision was not made, the company reported. Payment of the coupon on these bonds is provided once every 15 years. The closest date is July 2032.
The largest holder of these securities is FC "Otkrytie", the company reported in its report. He owns 3/4 of this issue. The securities on its balance sheet were not long before the Central Bank announced its readjustment: loans to O1 structures were replaced by bonds of "O1 group finance" - these deals "FC Otkrytie" is now challenging in the Moscow Arbitration. The case materials said that the bank lost more than 30 billion rubles due to asset replacement. security.
The new general meeting of owners of bonds of the issue for 40 billion rubles. is scheduled for May 7, the "O1 group finance" report says.
The company "Prime Finance", which is financing the assets of O1 Group, also tried to restructure. In March, she began the second round of negotiations with holders of defaulted bonds at 11.75 billion rubles. The company defaulted on securities in January this year, without paying 620.4 million rubles. on the coupon. At the general meeting of bond holders on April 5, holders voted against restructuring.