10 Nov 2009 13:08

Standard Bank and Pharmacy Chain 36.6 agree to restructure debt until 2014

MOSCOW. Nov 10 (Interfax) - Standard Bank and Pharmacy Chain 36.6 had agreed to restructure debt liabilities until July 1, 2014, the pharmacy company told Interfax.

Pharmacy Chain 36.6 said in a statement that its board of directors had approved providing a company guarantee on the debt of Leget Investments Limited (a 100% subsidiary of the chain) for a loan agreement with Standard Bank and Cyprus-based Roinco Enterprises Ltd worth $110 million.

The statement said that the guarantee is valid until July 1, 2014.

The company said that the board's decision approved a transaction to provide a guarantee for Leget Investment in order to restructure a $110 million loan with Standard Bank and Roinco Enterprises Ltd. "According to the earlier existing terms, the transaction should have been closed in February 2010. According to the terms of the new agreement, the debt's payment should be made by July 1, 2014," the company said.

Leget Investments currently owns 27% of the shares in Veropharm , reducing its stake earlier from 100%. In 2005, a company affiliated with Troika Dialog acquired 19.99% in the pharmaceutical producer. According to Veropharm's financial reporting, the Roinco Enterprises offshore company became the owner of this packet. Consequently, 49.99% of the shares in Veropharm were placed on the stock market while 24.9% were transferred to Glazar Ltd, which is a joint venture formed by the pharmacy and a bank consortium headed by Standard Bank.