Russian internet firm VK appoints advisers for $400 mln bonds

VK

28/03/2022 18:39

March 28 (Reuters) - Russian internet group VK  VKCOq.L  on
Monday appointed financial advisers for proposals to be made to
holders of its $400 million bonds who seek to demand their
redemption rights, just weeks after flagging issues with
servicing its debt. 
    The London-listed firm, which also runs email provider
mail.ru and has operations in gaming and education technology,
saw its shares plummet following a U.S. sanction on its chief
executive that dramatically changed VK's prospects.
 urn:newsml:reuters.com:*:nL5N2VI59X urn:newsml:reuters.com:*:nL5N2V601G
    The company said on Monday it has appointed Aspring Capital
and Serdika Financial Services to develop options for holders of
its senior unsecured convertible bonds due 2025 to address
events "outside the control of the company".
    The West has imposed heavy sanctions on Russian
billionaires, companies and officials in an attempt to force
Moscow to withdraw from Ukraine after its invasion of the
neighbour on Feb. 24. Russia has called its actions a "special
military operation".
    VK's shares have been banned from trading since March 3.
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    The company said earlier this month that it may not have
enough liquidity to pay its debt holders if most of them demand
to redeem the debt - which they are entitled to in the event
that trading of its GDRs remained suspended for 10 consecutive
days.  urn:newsml:reuters.com:*:nL5N2VI59X

 (Reporting by Amna Karimi in Bengaluru; Editing by Maju Samuel)
 ((Amna.Karimi@thomsonreuters.com; +91 8083261226;))