VTB Bank and FESCO have executed a credit facility for up to USD 680 million to restructure the bulk of the Group's debt
Far-Eastern Shipping Company PLC and its subsidiaries (together, the “Group”) announce the execution of a facility agreement with VTB Bank PJSC, for a total amount of up to USD 680 million, which the Group will use to repay and/or settle a significant portion of its existing financial liabilities. VTB Bank approved the terms of the Debt Financing last week.
PJSC “Commercial Port of Vladivostok” (“VMTP”), a member of the Group, will act as Borrower under the Facility Agreement. The credit line will be extended for 5 years for the purposes of financing payment of the Settlement Amount to Scheme Creditors in connection with the restructuring of the Group’s indebtedness; under the outstanding 8.00% senior secured notes due 2018 and 8.75% senior secured notes due 2020 ( the “USD Notes”) for refinancing the Repurchased Notes Facility, as well as for other debt restructuring purposes.
The Group also confirms that the standstill and lock-up agreement dated 6 September 2017 between, among others, FESCO and certain members of the ad hoc group of holders of the USD Notes (the “LUA”), terminated automatically on 31 October 2017, being the initial longstop date under the terms of the LUA.
As announced on 27 October 2017, the scheme of arrangement (the ”Scheme”), connected with the restructuring of the Group’s indebtedness under the USD Notes (as described in the explanatory statement published on 11 October 2017) was approved by the requisite majorities of the Scheme Creditors at the scheme meeting held on 27 October 2017, pursuant to the requirements under Part 26 of the Companies Act 2006.
