YUKOS receives notice of event of default from syndicated lenders
Posted: 5 July 2004
YUKOS Oil Company has received a notice dated 2 July 2004 from the facility agent under the YUKOS $1 billion pre-export facility secured term loan, that the lenders participating in that facility consider that an Event of Default has occurred as a result of recent well publicised events and their actual or potential impact on YUKOS' business and assets.
YUKOS' CFO Bruce Misamore stated: "Actions of representatives of the Russian government have led Russia's best and most creditworthy company to the brink of an unintended and artificial situation of insolvency and possible bankruptcy, creating an unthinkable default situation with its bank lenders, all at a time when the Company is experiencing the best results in its history".
The notice followed the decision of the Appeal Arbitration Court of Moscow which upheld the earlier ruling of the same court regarding the collection from Yukos of RUR 99,4 billion, the taking of steps to enforce this decision, the granting by the Moscow Arbitration Court of an order prohibiting YUKOS from disposing or encumbering its assets and the announcement of an Act of Tax Audit by the Tax Ministry in the amount of RUR 98 billion pertaining to the year 2001.
The notice stated that as a result of the default notice the loans are due and payable on demand by the facility agent.
YUKOS is currently assessing its legal options, but it intends, despite receipt of this notice, to continue its discussions with the lenders and take such actions as it deems appropriate and are within its power to ensure that all its obligations under the financing agreements are met.
Societe Generale S.A. is Co-ordinating Bank, Facility Agent and a Mandated Lead Arranger for the facility. Mandated Lead Arrangers for the facility are Citibank N.A., Commerzbank AG, Credit Lyonnais S.A., Deutsche Bank AG, HSBC Bank Plc, ING Bank N.V., KBC Bank N.V., BNP Paribas, and UFJ Bank Nederland N.V. Passport banks are JSC Bank Societe General Vostok (Moscow), Commerzbank (Eurasia) SAO (Moscow) and Credit Lyonnais Rusbank Societe Anonyme (Moscow).
For more information see www.yukos.com
Posted by Richard Price,
Editor Pipeline Magazine
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