Russneft announced the agreement with the banks of the schedule of payments on the loan for $ 1.17 billion

Russneft announced the agreement with the banks of the schedule of payments on the loan for $ 1.17 billion

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Russneft announced the agreement with the banks of the schedule of payments on the loan for $ 1.17 billion

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MOSCOW (Reuters) – Mikhail Gutseriev's Russneft oil company announced that it has agreed to change the schedule of payments on a $ 1.17 billion loan with Qatari bank CQUR as a lender and VTB (MCX: VTBR) as an agent, without disclosing the details of the restructuring.

The company and banks signed an additional agreement that settled the issue of payments on the loan, Russneft said, adding that it wants to sign another agreement with banks to extend the new terms by the end of the year.

VTB said it would not comment on client information. “Russneft has no outstanding obligations to VTB,” the bank's press service said in response to an inquiry from Reuters.

CQUR had not responded to Reuters' request at the time of publication.

A source in the company told Reuters that the company has agreed on a grace period, during which Russneft will pay only interest. For how long the grace period will be in effect, he did not disclose.

In the reporting for the first half of 2020 according to international financial reporting standards, Russneft reported that VTB transferred the company's loan to a new lender, which became CQUR Bank. The terms of the loan, which is secured by a pledge of ordinary shares of Russneft and a pledge of participation interests and shares of a number of the group's companies, remained the same.

The loan agreement contains restrictive conditions in financial and production activities that apply to the term of the agreement.

In the first half of the year, Russneft paid interest on the $ 36 million loan without repayment of the principal, as it negotiated with the lender on debt restructuring, including revising the current loan repayment schedule.

Due to the companies' non-payment of the principal debt on the loan at the end of August, Moody's assigned a limited default (LD) status to Russneft.

The amount of overdue debt of Russneft as of the end of the first half of the year on loans and borrowings amounted to $ 46 million, follows from its statements.

(Oksana Kobzeva. Editor Gleb Stolyarov)

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