OREANDA-NEWS. August 15, 2013. RusForest AB announces that the Company’s proposal to amend the terms and conditions of the remaining corporate bonds was unanimously approved.

As previously disclosed, RusForest bondholders that chose not to participate in the Debt-to-Equity Swap earlier this year now hold a zero coupon bond with a total outstanding nominal amount of SEK 3,745,250 (\\$570,000) maturing in May 2018.

The Company’s bond agent, CorpNordic Sweden AB, issued a notice to bondholders on July 15, 2013, regarding voting through a written procedure to remove restrictive covenants of the remaining bonds.

The deadline for responding to the CorpNordic notice was extended until August 8, 2013, at 4pm CET. Under the written procedure, the Company’s proposal to remove Clause 10 of the terms and conditions of the bonds was unanimously approved. Clause 10 contains special undertakings or restrictive covenants for the Company related to financial indebtedness, debt-to-equity ratio and listing of the bonds.

It is the Company’s opinion that the removal of these restrictions will save administrative costs and provide RusForest more flexibility to create value for bondholders and shareholders alike.

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.