UPDATE 1-Creditors reject Russian Standard Ltd restructuring plan

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LONDON, Feb 21 (Reuters) - An ad-hoc creditor group holding a defaulted Russian Standard Ltd Eurobond rejected the company’s indicative restructuring proposal, adding they planned to call the notes due and would not attend a meeting scheduled for March 6.

Russian Standard Ltd, a company linked to Rustam Tariko who owns Russian Standard Bank and also has interests in the vodka trade, 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.

According to a document inviting note holders to a meeting in London, Russian Standard Ltd proposes to swap the notes for either 25 percent of the principal amount in cash, or 20 percent in cash plus a “contingent value rights option”. That option would entitle holders for five years to a cash payment linked to dividend payouts and book value.

“(The) indicated proposal is unacceptable - no base for negotiations,” the ad-hoc group, which holds 27.5 percent of the notes, said in a statement on Wednesday.

“(The) group will continue with the acceleration process and the enforcement of the pledged shares.”

The ad-hoc group consists of five parties from the United Kingdom, Russia, the United States and Switzerland. The bond has $451 million outstanding and was last bid at 20 cents in the dollar, according to Thomson Reuters data.

Earlier in February, the creditor group had said it planned to start court proceedings and request an audit of Russian Standard Bank. (Reporting by Karin Strohecker, editing by Marc Jones and Louise Heavens)