The Mirax Group by Sergei Polonsky has a chance to restructure the latest debt - more than $ 390 million in CLN and ruble bonds. Late December, the Working Group of the credit committee recommended holders of securities to agree on deferred payment if Sergei Polonsky lays them eight development projects with total area of 2,300,000 square meters and personally vouch for this loan.
There was a letter at the disposal of "Kommersant" dated on December 29, Working Group of the Credit Committee (controls 80% of the outstanding bonds which cost of the first nine months of 2010 was $ 392.2 million) to holders of debt securities and shareholder of Mirax Group. It states that the working group reviewed the financial statements of Mirax and concluded that the cash flow generated by the project can not repay a substantial portion of the debt. "Given that most of the projects by the corporation, offered as collateral, are in the initial stage of implementation, and require significant costs to enter the site as well as a significant bank financing, the working group considers that restructuring of public debt of Mirax Group is possible only under certain conditions," according to the letter. We are talking about appointing a legal advisor (recommendation of creditors - Baker & McKenzie), making eight construction projects Mirax as collateral and personal guarantee of Sergei Polonsky. "In general, we accept these conditions, but we focus on their further elaboration," spokeswoman of Mirax Group, Julie Brazhentseva said.
As reported by the Mirax, bondholders will gain as collateral the projects with a total claimed area of 2,300,000 square meters: residential complexes “Kutuzovskaya Milya”, "Luzhnetskaya Naberezhnaya", "Rublevskaya Riviera," "Literaturnaya Gazette," Vellhaus on Dubrovka”, as well as housing under construction on the Kremlin embankment., 1, district "Myakinino” and multifunctional complex “Paradise Living” . Mirax will lay the projects in part in order enable the group to get loans from banks also under their mortgage, a source close to the corporation says. Mrs. Brazhentseva assures that loans will be attracted as for these projects if they are laid in part, and for the rest of them (the entire real estate development portfolio amounts to 8.8 million square meters; it is partly laid).
In the first nine months of 2010, total debt of Mirax Group was $ 593 million, of which $ 392.2 million is a debt for ruble bonds and CLN. Arrears of $ 150 million are as follows: for CLN - $ 119 million, and for ruble bonds of the second series - about $ 31 million. Principal holders of securities are the Bank of Singapure, PSB, VTB, Uralsib Capital. Revenue of the Corporation for the nine months of 2010, on its own data, was $ 200 million. In the autumn Mirax offered bondholders three variants of debt restructuring. First - to prolong the action of debt securities for eight years at 7% per annum through the issuance of new domestic bonds secured by a number of projects; Second - to tie bonds to a specific project of the company and direct free cash flows from the project for early repayment; Third - an additional financial participation of investors in the projects and getting their share of profits in addition to the coupon income.
A new scheme of restructuring will be developed before the end of February 2011, according to a spokesman of the corporation. "Bondholders can be understood: when deciding on debt restructuring of Mirax, there is a hope that they will be able to get something. But a more suitable name for such a solution is "deferred default”. The only question is when it happens", member of the Board of Alfa-Bank, Maxim Pershin says (the main creditor bank of Mirax). VTB is also a bondholder of Mirax (outstanding debt - 151 million rubles, or about $ 5 million in yesterday's Central Bank rate), which is not included in the committee. VTB has filed two applications of the bankruptcy of parent company of the developer - "MG Group: the first one was on October, 28 (examination has been rescheduled twice, the last time - on January 26), second one - on Jan. 12. As reported by the VTB, the bank is having a dialogue to Mirax, and the outlook is positive”. Earlier, sources of Kommersant told that VTB was preparing to withdraw both claims.