LLC „OR” (former name „Obuv Rossii”) defaulted on the payment of the 9th coupon on bonds series 002R-01 in the amount of 3.454 million rubles, the company said.

The reason for non-fulfillment of obligations is „lack of funds in the issuer’s current account in the amount necessary for the fulfillment of obligations,” the issuer explains.

Earlier, the company announced that it was in dialogue with bondholders and suggested considering three indicative options for restructuring bonds: the first is the prolongation of debt for a period of 8 to 12 years at an interest rate ranging from 0.1% to 1% per annum; the second – debt prolongation for a period of 12 to 15 years at an interest rate ranging from 1% to 4% per annum; the third option is the conversion of the debt on the bonds into the share capital of PJSC „ORG”, after the conversion, the current owners of the bonds will own from 30% to 40% of the parent company.

After receiving feedback from the bondholders, the group will finalize the options and formulate three proposals that will be put to a vote at the preliminary general meeting of the bondholders.