Mirax Group Agrees with Investors
OREANDA-NEWS. November 23, 2010. MIRAX GROUP, with the support of the financial consultant of International Financial Club (IFC-Bank), held a meeting with security holders on restructuring the Group’s public promissory notes.
The restructuring involves securities worth about 390 million US dollars (CLN maturing in March 2011, series 2007-01; LPN maturing in 2010, series LPN-6; ruble bonds of LLC MG Group, series 02, 03, and 04).
MIRAX GROUP presented to the investors three preliminary options for settling the actual debt by way of exchanging it:
• for dated securities
• for securities that mature depending on specific project cashflows
• by exchanging the current liabilities for securities
These three options provide interest income at a rate of about 7% per annum.
MIRAX GROUP has also offered an option for restructuring by issuing securities whose yield depends on a particular project / group of projects operating profit, in case the investors should be ready to provide additional financing.
Exact conditions of the restructuring will be defined jointly with the club of creditors, which the Corporation hopes will be created by the investors following the results of today’s meeting.
The corporation expressed readiness for an open and detailed discussion of the financial and production activities and for developing through negotiations final restructuring options, with due consideration of the investors’ wishes and the company’s capabilities.
The Corporation has reiterated its intention to fully repay the debt to the investors.
"The fact that we approach the issue of restructuring right now means that the real estate market has restored itself sufficiently enough for sound forecasts and recovery of the company”, said Alexander Lagutin, MIRAX GROUP’s First Deputy Chairman of the Managing Board for Finance.
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