MOSCOW (Reuters) – Russian Standard Ltd., associated with businessman Rustam Tariko, is open for direct negotiations and consultations with creditors, despite their appeal to the court demanding to sell 49% of Russian Standard Bank shares at auction, a company spokesman said.
The London division of Citibank, which acts as a trustee for holders of the bank's Eurobonds, on September 14 filed a lawsuit with the Moscow Arbitration Court against two companies associated with Russian Standard Ltd: Russian Standard Company CJSC and Russian Standard-Invest LLC, owned by Tariko structures, follows from the court's filing cabinet.
Investors through trustee demanded to put up 49% of the shares of Russian Standard Bank, pledged as part of the debt restructuring, for public trading, follows from the comments of Russian Standard Ltd. in response to a Reuters request.
“The filing of a claim by Citibank is a logical and expected procedural step in the current situation. We consider the option of foreclosure chosen by Citibank to be optimal, since the sale of a minority stake in the bank through public trading will allow us to determine its market value as fairly as possible,” the Russian Standard Ltd representative said in a response …
Eurobonds Russian Standard Ltd. were issued in 2015 for the restructuring of subordinated Eurobonds for $ 350 million and $ 200 million of Russian Standard Bank. Then the holders of the bank's bonds received 18% of the par value of the securities and a new issue of bonds, but not the bank, but Russian Standard Ltd., specially created for restructuring. For the new issue, Tariko had to pledge 49% of shares in Russian Standard Bank.
Initiative group of Eurobond holders Russian Standard Ltd. Since mid-2018, he has been trying to get this debt from the entrepreneur, since the issuer defaulted on bonds several times. Investors attracted the investment division of Alfa Group – A1 – for negotiations with Russian Standard Ltd., Vedomosti newspaper wrote https://www.vedomosti.ru/finance/articles/2019/06/05/803482-kreditori-tariko.
Russian Standard Bank with assets of 272.4 billion rubles had a capital of 39.5 billion rubles by August 2020, according to data from kuap.ru.
Citibank's press service declined to comment. A representative of Pala Assets, one of the proactive investors, said that Tariko never sent signals that he wanted to find a compromise solution.
“A pre-trial claim was sent to the defendants, they received it, there was no reaction to it. Despite the declared openness and alleged readiness for negotiations, Tariko's representatives have been refusing to dialogue for a long time. Perhaps it is more important for them to designate the appearance of negotiations than to look for real ways to resolve the existing situation, “Pala Assets CEO David Nitlispakh told Reuters.
A spokesman for Tariko said that this information is not true.
(Editor Dmitry Antonov)