Russian Standard creditors threaten collateral call if bond not paid
MOSCOW, June 13 (Reuters) - Russian Standard Ltd creditors
have threatened to begin calling in collateral if the company
linked to Rustam Tariko, who owns Russian Standard Bank and
founded Russian Standard Vodka, does not pay a Eurobond back in
Russian Standard Ltd defaulted on a Eurobond
coupon payment which was due on Oct. 27, 2017 and was secured by
a 49 percent stake in Russian Standard Bank.
A committee of investors who control more than 25 percent of
the bond issued an acceleration notice on June 11 obliging
Russian Standard Ltd to immediately pay $544.8 million, a
document seen by Reuters shows.
The group, which had previously rejected Russian Standard
Ltd's restructuring proposal, now wants the bank shares used as
collateral on the bond so it can sell it to "an appropriate
"The Ad Hoc Committee intends to instruct the trustee to
enforce the security over the pledged shares with the aim of
realising the best possible value..." the document said.
A Russian Standard Ltd spokesman said in the email that it
was aware of the "technical step", adding that the bondholders
could have taken it at any point since October 2017.
"We are currently discussing potential terms of an agreement
with bondholders and may launch an official bondholder voting
process shortly," the spokesman said.
The enforcement process may take "significant time" as it is
regulated by the bond documentation, would involve a Russian
court process and may require regulatory notices or approvals.
(Reporting by Katya Golubkova
Editing by Alexander Smith)
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