The Fesco’s Eurobond holders rejected the proposal for debt restructuring and insist on cash payment in the amount of 85% of the outstanding principal amount and the accrued coupon income. The Russian shipping group proposed one-time cash payment of 50% of the outstanding principal amount of Eurobonds and Ruble bonds of two issues, as full and final settlement of obligations. However, the bondholders insist on the extension of the maturity of about two years, until 2021, and enabling the release of funds by partial capitalization of coupon payments in 2016 and 2017. The company, in turn, intends to re-start negotiations with the bondholders to agree to restructure the agreement.
“We questioned the feasibility of the proposed Eurobonds holders options, and confirms its intention to achieve the key objective of restructuring – namely to reduce the proportion of borrowed funds in the capital structure to an acceptable level by agreeing on restructuring of the financial debt of the Group, including debt on Eurobonds”, says the official statement of Fesco.
Fesco Transportation Group is one of the largest private transport and logistics companies in Russia. The majority shareholder is the financial group Summa (32.5%), while other shareholders are GHP Group (23.8%), TPG (17.4%) and free floating shares (26.3%). The company’s shares are traded on the Moscow Stock Exchange.
Fesco Transportation Group operates a fleet of 26 vessels, manages Commercial Port of Vladivostok (CPV) and the terminal Dalreftrans, as well as railway operators Transgarant and Russian troika. Also the group operates about about 36,000 containers.