Trading closedVK Company Limited spoke about the possible consequences of the suspension of trading. The situation threatens to default. Discuss the possibility of default />
We are talking about trading in global depositary receipts (“GDRs”) for ordinary shares. They were suspended by the exchange on March 3, 2022. It is not yet clear when trading in the company's securities will resume.
VK explained that under the terms of the issue of senior unsecured convertible bonds maturing in 2025, delisting occurs if, among other things, trading in GDRs on the main market of the London Stock Exchange are suspended for a period of 10 or more trading days in a row. This deadline is Wednesday, March 16, 2022.
If a delisting occurs, the company will notify bondholders, and they have the right to require VK to redeem their bonds at par together with accrued interest on the respective maturity date. As noted, there is a possibility that the company will not have sufficient liquidity to repay. And if VK fails to negotiate with the bondholders and does not pay the money, a default will occur.
Source: VK