According to VK Group’s announcement, if the majority of holders of the company’s senior unsecured convertible bonds on the London Stock Exchange demand early redemption, there is a possibility that the issuer will not be able to fulfill its obligations. The company issued bonds worth $400 million at 1.625% maturing in 2025.

“It is possible that the issuer will not have sufficient liquidity in the holding company to fund the payments required for the redemption if the majority of the bondholders choose to exercise their redemption right,” the company’s spokesperson said.

The exchange has halted trading in global depositary receipts of VK Group on March 3, 2022. Under the terms of the issue, if trading in the company’s global depositary receipts is halted for ten or more trading days, bondholders will have the right to demand redemption from the company.

According to VK Group, the company had about $190 million in cash and cash equivalents as of March 9, including $140 million in foreign currency ($80 million of which is held outside Russia).

Original (in Russian)