Bondholders filed a lawsuit for bankruptcy of FESCO

FESCO bankruptcyManaging company Capital filed in the Moscow Arbitration Court a lawsuit on bankruptcy of FESCO, which is the head structure Fesco Group. The lawsuit was filed on February 27, but details for the claim were not disclosed. A source familiar the negotiations, said that the managing company Capital does not intend to bankrupt Russian shipping company, but wants to get their money, and this claim is strengthening its negotiating position. The Capital hold ruble bonds in FESCO worth 306.6 million rubles, acquired in 2013. Then the Russian shipping company issued bonds worth 2 billion rubles, which are maturing in 2017.

“We are in dialogue with our creditors and we expect that we will find a solution that will satisfy both sides. We previously formulated our vision of the main parameters of the deal and announced it is currently in process and discussions with investors, including considering alternative options. Our actions are focused on protecting the interests of all of stakeholders Fesco Group, rather than individual companies”, reported the press service FESCO, when asked about the lawsuit filed by the company.

In June 2016, the ruble bond holder of FESCO – Managing company Capital filed a lawsuit against the company in the Moscow Arbitration Court to the almost 63 million rubles. In November, the court satisfied the claim of Capital, but FESCO appealed against.

Total FESCO has issued ruble bonds for 5 billion rubles and two issues of Eurobonds (worth 550 million EUR and 325 million USD). The short-term debt of FESCO is 909 million USD, of which 758 million USD at ruble and Eurobonds, another 134 million USD in the bank debt.