Russia’s Ozon says it fails to redeem some bonds, risking default

(Reuters) – Russian e-commerce participant Ozon mentioned on Monday it has did not redeem some bonds to a bunch of holders, placing it vulnerable to a possible default, however mentioned it’s negotiating with bondholders to discover a answer.

Nasdaq-listed Ozon, buying and selling in whose shares has been suspended since Feb. 28, mentioned it’s restricted from sending money from its Russian subsidiaries to its Cypriot holding firm, Ozon Holdings Plc, which is the issuer of the bonds.

“The corporate consequently is not going to be funding the cost required for the redemption of the bonds,” it mentioned.

Ozon had warned of bond cost points in early March and has since entered into discussions with an advert hoc group of holders of its $750 million, 1.875% unsecured convertible bonds.

Ozon, which has not been focused by Western sanctions, has mentioned Russian capital controls and the ever-changing regulatory backdrop have been limiting it from diverting funds from its Russian subsidiaries, creating the chance that it could have inadequate liquidity on the required time.

On Thursday, in a quarterly outcomes disclosure, Ozon mentioned a considerable portion of bondholders have been entitled to obtain principal and curiosity on Might 31 and that failure to pay by June 14 would place it in default.

“The Firm performing in good religion is constant productive negotiations with plenty of bondholders to discover a appropriate answer within the given circumstances,” Ozon mentioned in an announcement on Monday.

“The Firm is aiming to finalise the long-term restructuring of the bonds throughout the present monetary yr,” it mentioned.

Ozon mentioned it “plans to proceed to function as typical.”

(Reporting by Reuters; Modifying by Leslie Adler)