The holders of the Bonds which jointly hold 59% of the total debt outstanding under the Bonds have supported the proposal of the Company to waive their right to require early redemption of the Bonds for a period of three months (the “Waiver”). The Company is grateful to those who supported the proposal and regrets to inform that despite the Company's having fulfilled its obligation to pay the coupon and being prepared to pay 20% of nominal value of the Bonds, the amount of the affirmative votes received is not sufficient to approve the Waiver (the approval of which required more than 75% of the total debt outstanding under the Bonds).
The holders of the Bonds were informed that performance of the payment obligations under the Bonds is not an easy decision for the Company, as it forces it to divert a significant cashflow from the operational business. In spite of that the Company was ready to perform its obligations under the Bonds in full if the proposal for the Waiver obtains the required majority. Moreover, the Company has paid the coupon without any regard to the results of the bondholders' meeting.
Having the Waiver in place is in the interest of all creditors of the Company and its subsidiaries (the “Group”) and is critical in view of the need to ensure the stability of the capital structure of the Group for the period of negotiations on the restructuring of the Group’s indebtedness.
Unconstructive position of certain holders of the Bonds complicates the negotiation of the restructuring terms acceptable for all stakeholders. However, the Company remains committed to act in the interest of all stakeholders and will continue discussions with the holders of the Bonds to work out an acceptable solution.