Russian retail group Seventh Continent has struck an agreement with bond holders that will see the company restructure its debt in order to avoid bankruptcy.
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The company has agreed with holders of its second bond issue, dated June 2007, to repurchase 20% of its securities, with the remaining shares to be sold as exchange-traded debentures.
According to leading Russian analysts, this will help the company to get out of debt and resume the development of the chain.
Majority-owner Alexander Zanadvorov has also reportedly agreed new payment terms on a US$560m loan with the group’s largest creditor, French bank Natixis.
According to Russian media, Natixis has prolonged the repayment of the loan for the next seven years, until November 2016, with an annual interest rate of +1.5%.
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By GlobalData
