Seventh Continent's creditors agree to debt restructuring

November 10, 2009 RBC
The Seventh Continent retail chain has reached an agreement with 99.9 percent of the series 02 bond holders on a restructuring of the company's obligations worth RUB 7bn (approx. USD 241m), the RBC Daily newspaper reported today. The retail chain will buy back 20 percent of its bonds, and the remaining securities will be swapped for exchange bonds. Two additional offers will be made to pension funds. Analysts are confident that the retailer will be able to settle its debts, and experts say the company should go back to the active development of its chain.

In June of this year, Seventh Continent failed to buy back the series 02 bond issue placed two years ago with a coupon rate of 7.8 percent per annum. The company offered a restructuring plan to its bondholders at that time, but only 73 percent of them agreed to it.
  • Status
    redeemed
  • Country of risk
    Russia
  • Redemption (put/call option)
    *** (***)
  • Amount
    7,000,000,000 RUB
  • М/S&P/F
    — / — / —
Company — Seventh Continent
  • Full name
    The Seventh Continent
  • Registration country
    Russia
  • Industry
    Trade and retail