March 7, 2018 / 8:54 AM / 4 months ago

Russian Standard Ltd creditor group to accelerate notes in next 3 weeks

LONDON, March 7 (Reuters) - A group of creditors holding a defaulted Russian Standard Ltd Eurobond said on Wednesday they would call the notes due in the next three weeks unless the outstanding coupon was paid.

“Acceleration is expected to take place during the next 3 weeks – only way to avoid the acceleration of the Russian Standard notes is to cure the default by paying the 6.5 percent coupon,” the group, which holds 27.5 percent of the notes, said in a statement.

Russian Standard Ltd, a company linked to Rustam Tariko who owns Russian Standard Bank and founded Russian Standard Vodka, defaulted on a 2022 Eurobond coupon payment due on Oct. 27, 2017. The bond was secured by a 49 percent stake in Russian Standard Bank.

If a lender accelerates, which can be initiated by a group of at least 25 percent of note holders through the trustee, the borrower has to immediately pay the entire balance not just the current due payment. (Reporting by Karin Strohecker; editing by Claire Milhench)

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