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The company Petropavlovsk for 9 months has fallen in price in 7 times

The company Petropavlovsk has reached an agreement to restructure the debt on convertible five-year bonds for $ 310,5 million. The maturity of these bonds expires in February 2015. This was announced today by financial director Andrei Maruta, at a conference in London.

According to him, the company received support from the holders of 62% bonds to support the restructuring plan.

To pay off the debt, the company plans to issue new five-year bonds in the amount of $ 100 million, the rate of which will be 9%, and the maturity date is December 2019, Andrei Taruta said.

In addition, by February 2015, Petropavlovsk will place additional ordinary shares in the amount of $ 235 million. The shareholders of the company, Peter Hambro and Pavel Maslovsky, will receive the preemptive right to redeem shares, who will redeem new securities for about $ 30 million, Taruta said. Another $ 45 million will be paid by bond holders. The shares will be offered to all shareholders at a price of 5p per share. Today, Petropavlovsk shares are down 30% to 16p per share. Since the spring of this year, Petropavlovsk has fallen in price by 7 times, to about £ 24 million ($ 37 million).

As RBC reports referring to the senior portfolio manager of the GHP Group, Fyodor Bizikov doubts that the company will be able to sell bonds for $ 100 million and the proposed yield. The situation on the market has deteriorated significantly due to geopolitical reasons, he noted. If the shareholders of the gold miner do not support the proposed restructuring plan, then existing holders of bonds for $ 160 million will be able to convert their bonds into Petropavlovsk shares, Andrei Taruta noted. The coefficient of exchange of bonds for shares is still unclear.

Over the next few weeks, the company plans to finalize an agreement with its creditors on the refinancing of the bond issue. After that, this issue is subject to approval by shareholders and bondholders, the report says.

In November of this year, Petropavlovsk received proposals from a consortium of investors led by the German Sapinda fund. Investors were ready to redeem the additional issue of Petropavlovsk for $ 150-250 million, provided that these funds will go to pay off the bonds, and bring its stake in Petropavlovsk to 80%, the Financial Times reported. There were other negotiations with potential investors, Maslovski said yesterday, without giving details. Representatives of the fund declined to comment.

According to the annual report of Petropavlovsk for 2013 year, its largest creditor is Sberbank, the company owes it $ 69,4 million.

In the first half of 2014, EBITDA of Petropavlovsk increased by 41%, to $ 139,2 million, pre-tax profit was $ 8 million, compared with a loss of $ 615 million in the first half of 2013. The largest shareholder of Petropavlovsk is the investment company Van Eck Associates Corporation (13,96%), about 4% of the company's shares belong to Norges Bank, another 3,43% is owned by Peter Hambro & Associates, the beneficiary of which is the chairman of the board of directors of the group Peter Hambro, follows from the information, posted on the company's website. Pavel Maslovsky owns 3,8%.

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