|
|
|
|
 |
|
 |
 |
|
|
|
|
|
|
| 3/23/2009 |
| Renaissance Capital proposes plan to resolve RBC’s crisis situation |
MOSCOW, March 23, 2009 - The investment bank Renaissance Capital is presenting a proposal to the creditors and shareholders of RBC - Information Systems (hereafter “the Company”) on how to resolve the crisis situation in which the Company currently finds itself.
The plan proposes increasing the Company’s share capital, with 65% of the new share capital being sold on to a financial investor for USD 35 million. The USD 35 million attracted from the investor will go towards partial repayment of the company’s debt to creditors and also towards financing ongoing activities and development of the company. Creditors are offered the following three-part settlement under the plan: first, all creditors simultaneously receive 8% of the total sum of their debt in cash. Second, creditors are offered to choose one of two options for the restructuring the debt owed to them: writing off 45% of the debt and repayment of the remainder in seven years with an annual interest rate of 4%; or, writing off 65% of the debt and repayment of the remainder in three years with an annual interest rate of 4%. Third, all creditors receive a proportional stake of the company’s new share capital. The total share to be held by creditors is 10% of the new share capital of the company. The plan being proposed will not only stabilize the financial situation of the Company, but also will strengthen it due to the new powerful financial support.
ONEXIM Group, with which a corresponding preliminary agreement has been reached, is prepared to act as the financial investor.
Renaissance is sending the terms and conditions of its proposal to the main shareholders, creditors and the management of the Company and will engage in a series of negotiations and meetings on this matter over the next 30 days.
“Today the Company has an attractive business model and is a recognized leader in its sector. However, the deterioration of the economic climate and the Company’s large debt burden have created substantial risks to its financial stability. At the moment the Company is in default on a series of bonds including debt owed to foreign creditors. Moreover, there is no restructuring plan that takes into account the interests of all sides—shareholders, creditors and management. In our view, this situation may cause a serious risk of bankruptcy for a company that used to be successful,” said Ruben Aganbegyan, Renaissance Capital CEO, Russia.
“The realization of the plan we are proposing will facilitate a speedy resolution to the crisis situation RBC finds itself in, and accounts for the interests of creditors, shareholders and the company itself. Moreover, such a decision will not only save the business of RBC and regain the trust of advertisers, partners and employees, but also create new opportunities for the development of the company during the crisis,” Aganbegyan said.
About Renaissance Capital (www.rencap.com)
Renaissance Capital is a leading investment banking firm in Russia, the CIS markets, sub-Saharan Africa and in other high-opportunity emerging markets. Renaissance Capital has market-leading positions in each of its core businesses - M&A, equity and debt capital markets, securities sales and trading, research, and derivatives. Renaissance Capital is part of the Renaissance Group.
|
|
|
|
