Solution for RosGeo's debts will be found, original option being developed - MinFin

MOSCOW. Oct 18 (Interfax) - A solution for the liabilities of RosGeo, the Russian geological holding company, will be found; direct support from the budget to pay off its debts is not planned and an original option is being worked on, Russian Deputy Finance Minister Alexei Moiseyev told journalists on the sidelines of the Moscow Financial Forum.

RosGeo recently defaulted on bonds worth 6 billion rubles, and a group of bond holders has already filed a lawsuit against the holding with an arbitration court.

Responding to a question about the prospects for restructuring RosGeo's debts, Moiseyev noted the case of another state company, Rosnano, where a compromise was ultimately found. The Rosnano case showed that "a process that's mutually acceptable to creditors and borrowers with state support" is possible, he said.

"Some kind of solution for RosGeo will be worked out, what kind [of solution] I can't say for now. It will be a somewhat original one. It won't just come out of [the state's] pockets, there won't be one like that," he said.

There are several months available to work out a solution together with the Natural Resources Ministry and consultants, he said.

"For now we've discussed overall how we will act; we're working out how feasible the scheme is," he said.