Company news in September 2004 | |||
Lenders to Approve of TNK –BP’s Reconstruction
TNK-BP offered holders of TNK’s Eurobonds to agree upon the holding’s corporate reconstruction on September 24. TNK-BP plans to consolidate 600 enterprises of the group in a new Russian holding, which will concentrate the group’s profits. But the lender’s consent is required for this purpose: for instance, conditions of TNK’s Eurobond issue envisage that TNK is prohibited to perform reconstruction that may result in credit rating degradation. TNK-BP’s letter indicated that TNK International will still secure the loan; however, a new borrower, a future profit center of TNK-BP, which bears a conventional name of New Russian Holding (NRH) and which TNK-BP promises to register by the end of the year, will replace TNK. The document also contains the reconstruction pattern. At the first stage, NRH will be a 100% subsidiary of TNK International and will receive TNK-BP’s stakes in TNK, ONACO and SIDANCO. Then other companies of the group will join NRH. Three international rating agencies confirmed ratings of TNK-BP(an off-shore company registered in British Virgin Islands, which holds 100% in TNK International Ltd). Moody's maintained the basic rating at Ba2 (with Positive forecast) and Ba3 rating for Eurobonds. Standard & Poor's confirmed the rating at BB- level, with positive forecast. Fitch maintained the basic unsecured and basic secured foreign exchange ratings at BB and BB+, respectively. Moody's and S&P materials underline that the ratings have been confirmed upon receipt of information on TNK-BP’s reconstruction.
Source: Vedomosti