Brief: Russia's VK Works On Proposal To Bondholders Due To De-Listing Event Of 2025 Bonds

VK

17/03/2022 07:39

March 17 (Reuters) - VK  VKCOq.L  published an update on the
potential impact of the suspension of trading of Global
Depositary Receipts representing interests in ordinary shares of
the Company on its $400 million 1.625 per cent Senior Unsecured
Convertible Bonds due 2025:
    * De-listing Event under the Bonds has occurred following
the
close of trading on March 16, 2022 as trading did not resume
    * The Company continues to operate as usual and had
approximately
$170 million in liquidity as of March 14, 2021 to support
ongoing operations and current financial obligations
    * $135 million of this liquidity was held in foreign
currency,
including around $75 million held in foreign currency outside
Russia to support working capital of VK's international
businesses
    * The restrictions under the Russian capital control and
protection measures may affect the Company's ability to transfer
cash funds from the Company's Russian subsidiaries to its
foreign holding company, which is the Issuer of the Bonds
    * The Company has commenced work to develop a proposal to
the
bondholders to address the De-listing Event and possible
alternatives to the put option exercise
    * The Company will present the proposal for consideration
and
approval by the  bondholders ahead of the Put Date which is the
14th calendar day after the last day of the De-listing Event
Period, calculated as May 31, 2022
Further company coverage:  VKCOq.L  


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