Russian logistics group Fesco is waiting for creditors’ vote for proposal on transfer of payments on defaulted bonds

FescoThe transport group Fesco is waiting for the result of the creditors’ vote on the transfer of payments on defaulted bonds of BO-01 series on May 18, released the company’s President Alexander Isurin. In early May, the Far Eastern Shipping Company proposed to the creditors to postpone the repayment period for the default BO-01 series bonds to October 27, 2017. In particular, the owners of securities were offered to postpone for October 27 payments on the fourth coupon of bonds and under the new agreement, which assumed the transfer from October 27, 2016 of payment on the third coupon. Earlier Fesco planned to settle on both these obligations until April 27.

“Now the voting is in progress. This is the statutory period during which the bondholders can vote. The deadline expires on May 17, respectively, on May 18 will be showed the protocol and will be held a decision”, said the President of FESCO Transportation group, Alexander Isurin. “Also the Fesco’s IFRS financial statements for 2016 will be published after May 18 and delay was due to the process of debt restructuring”, added he.

FESCO agreed with holders of bonds BO-01 on the restructuring of bonds of this series in January 2017. The company placed bonds of this series in 2015 with a maturity date of February 27, 2018.

FESCO also reported that it postpones the publication of financial results under IFRS on the results of 2016 due to ongoing negotiations on the restructuring of the company’s debt with creditors. In the company’s financial report for 2015, the transport group reported a loss of 11.5 billion rubles, a significant excess of short-term liabilities over current assets and a risk of suspension of its operating activities.