Read us | Listen to us | Watch us | Join Live Events | Turn Off Ads | Live |

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Catalan Catalan Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Chinese (Traditional) Chinese (Traditional) Corsican Corsican Croatian Croatian Czech Czech Danish Danish Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Irish Irish Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Telugu Telugu Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Welsh Welsh Xhosa Xhosa Yiddish Yiddish Yoruba Yoruba Zulu Zulu

Russia’s Sibir Airline restructures part of debt

0a_62
0a_62
Written by editor

MOSCOW – Russia’s Sibir airline has agreed with the holders of 40 percent of an overdue bond to buy back 20 percent of the paper and pay back the rest over the next two years, the airline and its rest

MOSCOW – Russia’s Sibir airline has agreed with the holders of 40 percent of an overdue bond to buy back 20 percent of the paper and pay back the rest over the next two years, the airline and its restructuring adviser said.

“Sibir continues its dialogue with the remaining bondholders. With the majority, negotiations are at the stage of agreeing documentation. The company hopes to complete the process in the coming days,” Sibir said.

The airline failed to redeem a 2.3 billion rouble bond in early February.

The airline will spend 197 million roubles on the buyback, and pay a 5.7 percent coupon to holders of 985 million roubles worth of its bonds, Oleg Gordienko, head of debt capital markets at Raiffeisen Bank in Moscow, the bank’s restructuring agent, said.

“It was paid out of operating income,” Gordienko said.

The remainder will be paid in equal instalments in August 2009 and 2010, he added.

Sibir is the third Russian company to restructure its debt to bondholders. Developers PIK and Mirax have already agreed a delayed payment schedule with creditors. But high-profile restructuring negotiations continue around indebted billionaire Oleg Deripaska’s aluminium giant RUSAL, which owes creditors $14 billion.