The Russian transportation and logistics company FESCO Group expects to complete Eurobonds debt restructuring by the end of July 2017, according to the group’s president Alexander Isurin. Fesco is in talks with bondholders on debt restructuring after defaulted on Eurobonds in May 2016. The group has two issues of Eurobonds for a total of 655 million USD and two issues of ruble bonds for a total of 7 billion rubles.
“Until the end of July, I hope that we will agree on the main conditions under which we can restructure the Eurobonds debt”, said Fesco Group’s president Alexander Isurin.
In 2016 the company offered holders a one-time payment of 50% of the outstanding principal amount for Eurobonds and ruble-denominated bonds, but the holders of the securities requested a payment of 85%. Earlier it was reported that the Far Eastern Shipping Company (FESCO, the head structure of the Fesco Group) had signed agreements on the transfer of missed payments on BO-01 series bonds to October 2017. FESCO also reported that it postpones the publication of IFRS financial results for the year 2016 due to ongoing negotiations on restructuring 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 obligations over current assets and a risk of suspension of its operating activities.
Transport group Fesco is one of the largest private transport and logistics companies in Russia. FESCO’s main shareholder is Summa group (32.5%), while other major shareholders are GHP Group (23.8%) and TPG (17.4%).