Far Eastern Shipping Company (FESCO) is ready to pay coupon of 20% from the nominal value of the bonds series BO-02, despite the previously proposed changes to the terms of early repayment. The decision was taken after receiving a positive decision of bondholders in relation of the refusal of the right to demand early repayment. On June 1, FESCO has informed of default in the payment of the coupon income and the 20% amortization of the BO-02 series corporate bonds. The reason for payment failure was the intention of the company to restructure obligations. Earlier Board of Directors of FESCO proposed to move the amortization payments of BO-02 series corporate bonds from May 31 to November 29. In particular, the volume of default payments on outstanding obligations amounted to 521.69 million rubles.
“It’s not an easy decision for the company, because it compels select significant liquidity from the operating business, exposing the risk of uninterrupted operation of the operating group of companies”, said FESCO in official statement. “This decision was due to the need to protect the company from the non-structural actions of individual creditors, dictated by short-term profits, and contrary to the interests of the enterprise vitality”, added the statement of the company.
The transport Group FESCO is one of the largest private transport and logistics companies in Russia. Its fleet consists of 26 vessels, while the company also operate the Commercial Port of Vladivostok (CPV) and the terminal Dalreftrans, as well as railway operators Transgarant and Russian Troika. Also in the management group are about 36,000 TEU. The main shareholder of FESCO is the financial group of Summa of brothers Magomedov (32.5% stake), GHP Group with 23.8%, TPG with 17.4% of the shares. The free float is 26.3% of the shares. The company’s shares are traded on the Moscow Stock Exchange.