Press releases | Archive 2009
RBC preliminary agrees with creditors on debt restructuring
Moscow, July 8, 2009 - OAO RBC Information Systems (RTS, MICEX: RBCI) announces that it has reached a preliminary agreement with its major creditors on the debt restructuring terms. RBC has received preliminary approval of the debt restructuring plan from creditors, which took part in negotiations and represent approximately 50% in the company’s total debt. Signing of the restructuring documentation is planned for the nearest future.
The terms of the debt restructuring have been exhaustively negotiated over the past few months between RBC and a core group of creditors representing a larger portion of the overall debt of the company. The terms have been designed to provide a compromise between the interests of the creditors, shareholders and RBC.
For creditors, the terms of the debt restructuring provide for the full repayment of 100% of nominal outstanding debt over a 5-year term along with market-level interest rates. There are amortisation and similar structured payments to ensure the debt is repaid to creditors as soon as possible, but at the same time providing some flexibility for RBC to repay as and when free cash flows are available. The management believe that the company’s projections will enable the debt to be substantially repaid over the next 3-4 years, delivering a company with low gearing.
RBC has many tentative proposals from various parties interested in investing in the company. Certain of these proposals appear to be attractive. However, the majority of potential investors prefer to invest in a company, which has one debt instrument with unified terms, and which is not involved in lawsuits. Therefore, RBC management’s proposal is to sign the current debt restructuring mechanism, offering equal conditions for all creditors, in the nearest future. This will enable the creditors to secure their interests on equal terms, and will lure new potential investors to RBC.
The successful completion of the debt restructuring will establish a platform from which RBC will start to re-grow its business and profitability.