PhosAgro, Moscow, has been unable to obtain the consent of bondholders to amend the terms of international bond issues, including direct payment to holders and payments in alternative currencies such as rubles and yen, according to an Interfax report.
The PhosAgro request comes after a Russian presidential decree in July that requires Russian borrowers with outstanding Eurobonds to ensure fulfillment of obligations on them to bondholders who hold the bonds through Russian depositories.
PhosAgro was reported to be considering “the best course of action” with respect to the bonds, which includes a number of alternatives, including the potential convening of a meeting of bondholders.
In the meantime, on Aug. 18 PhosAgro said that despite the withdrawal of credit ratings from all Russian companies by international rating agencies, it continues to service its debt obligations, taking all necessary steps to ensure that they are paid on time.