PRESS: Russia’s UTair stops servicing banking credits

MOSCOW, May 6 (PRIME) -- Russian airline UTair has almost ceased to service its debt to banks, business daily Vedomosti reported on Monday, citing officials of the creditor banks.

The airline said in its 2018 report under International Financial Reporting Standards (IFRS) that it failed to pay interest for two seven-year loans: a 15.4 billion ruble credit issued by a banking syndicate and a 17.4 billion ruble loan given by Sberbank guaranteed by an affiliate of Surgutneftegas.

UTair has a third, 12-year, 23.7 billion ruble syndicated loan, on which it paid only a 1 million ruble interest.

Redemption of the body of the loans shall start in November 2020. The company started restructuring negotiations in March asked for a full write off the 23.7 billion ruble loan and 50% to the 15.4 billion ruble loan. The company also asked to write off a 12-year 3.6 billion ruble loan and a 7-year 2.4 billion ruble credit it received from Surgutneftegas.

UTair also offered restructuring to holders of 13.3 billion rubles of bonds.

(64.6314 rubles – U.S. $1)

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