Russia’s Sistema in technical default on RUB 8.9 billion of credit

By Caroline Salls

Pittsburgh, Aug. 29 – Sistema PJSFC announced Monday that a technical default occurred on RUB 8.9 billion of its credit obligations.

According to a news release, the technical default took place because of the ongoing arrest of shares of MTS, Medsi and Bashkirian Power Grid Co., which is owned by Sistema and Sistema-Invest.

The company said the arrest was imposed by the Republic of Bashkortostan Arbitration Court as part of legal proceedings initiated by Rosneft, Bashneft and the Republic of Bashkortostan against Sistema and Sistema-Invest.

Sistema said its remaining loan agreements do not contain a condition under which this arrest of shares will lead to a technical default.

In accordance with market practice, Sistema said it asked lenders to provide waivers in connection with the event of technical default.

The company continues to service its credit and financial obligations on time and in full and plans to continue doing so in the future, the release said.

In addition, Sistema said it believes that the arrest of its assets is unfounded, and it continues to take necessary steps to have the arrest lifted. To this end, the company has filed an appeal with the 18th Arbitration Court.

Sistema is a Russian conglomerate based in Moscow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.