VK warns about risk of early redemption of bonds because of pause in trading on LSE
MOSCOW. March 15 (Interfax) - VK has warned about the risk of early redemption requests for $400 million in bonds on the part of the bondholders if trading does not start on the LSE on March 16, inclusive, the Russian internet company said in a press release.
According to VK, the company had around $190 million in cash and cash equivalent as of March 9, with $140 million of the amount in foreign currency, $80 million of which is outside Russia.
"Owing to uncertainty regarding the effect of restrictions on being able to transfer funds from the company's Russian subsidiaries to its foreign holding company as part of the recent capital control and protection measures in Russia, as well as the ongoing numerous changes in the regulatory framework, there is a possibility that the issuer would not have sufficient liquidity in its holding company in order to finance the payments required for the buyback if a majority of holders decide to exercise the right to redeem the bonds," the company warns.