MOSCOW, June 13 (Reuters) - Russian Standard Ltd creditors have threatened to begin calling in collateral if the company linked to Rustam Tariko, who owns Russian Standard Bank and founded Russian Standard Vodka, does not pay a Eurobond back in full.
Russian Standard Ltd defaulted on a Eurobond coupon payment which was due on Oct. 27, 2017 and was secured by a 49 percent stake in Russian Standard Bank.
A committee of investors who control more than 25 percent of the bond issued an acceleration notice on June 11 obliging Russian Standard Ltd to immediately pay $544.8 million, a document seen by Reuters shows.
The group, which had previously rejected Russian Standard Ltd’s restructuring proposal, now wants the bank shares used as collateral on the bond so it can sell it to “an appropriate buyer”.
“The Ad Hoc Committee intends to instruct the trustee to enforce the security over the pledged shares with the aim of realising the best possible value...” the document said.
A Russian Standard Ltd spokesman said in the email that it was aware of the “technical step”, adding that the bondholders could have taken it at any point since October 2017.
“We are currently discussing potential terms of an agreement with bondholders and may launch an official bondholder voting process shortly,” the spokesman said.
The enforcement process may take “significant time” as it is regulated by the bond documentation, would involve a Russian court process and may require regulatory notices or approvals. (Reporting by Katya Golubkova Editing by Alexander Smith)