Russia's Ozon says it fails to redeem some bonds, risking default

Ozon Holdings

30/05/2022 19:41

May 30 (Reuters) - Russian e-commerce player Ozon  OZON.O 
said on Monday it has failed to redeem some bonds to a group of
holders, putting it at risk of a potential default, but said it
is negotiating with bondholders to find a solution.
    Nasdaq-listed Ozon, trading in whose shares has been
suspended since Feb. 28, said it is restricted from sending cash
from its Russian subsidiaries to its Cypriot holding company,
Ozon Holdings Plc, which is the issuer of the bonds. 
    "The company consequently will not be funding the payment
required for the redemption of the bonds," it said.
    Ozon had warned of bond payment issues in early March and
has since entered into discussions with an ad hoc group of
holders of its $750 million, 1.875% unsecured convertible bonds.
    Ozon, which has not been targeted by Western sanctions, has
said Russian capital controls and the ever-changing regulatory
backdrop were restricting it from diverting funds from its
Russian subsidiaries, creating the risk that it would have
insufficient liquidity at the required time.  urn:newsml:reuters.com:*:nL5N2XJ3QD
    On Thursday, in a quarterly results disclosure, Ozon said a
substantial portion of bondholders were entitled to receive
principal and interest on May 31 and that failure to pay by June
14 would place it in default.
    "The Company acting in good faith is continuing productive
negotiations with a number of bondholders to find a suitable
solution in the given circumstances," Ozon said in a statement
on Monday.
    "The Company is aiming to finalise the long-term
restructuring of the bonds within the current financial year,"
it said.
    Ozon said it "plans to continue to operate as usual." 

 (Reporting by Reuters;
Editing by Leslie Adler)