Pharmacy Chain 36.6 holds emergency talks with bondholders

Russia-Based Pharmacy Chain 36.6 did not redeem a RUB3 billion (USD96.28 million) debut bond issue on 30 June. The company did not repay the bond due to insufficient funds. Legal debt restructuring was being agreed with bondholders. The talks are still in progress and are expected to be finished in the near future, Head of Raiffeisenbank Bond Loans Department, Oleg Gordiyenko said. The company proposed that it pay bondholders 15% of the par value in Q2-3 2009 and swap the other debt for new bonds of second series with maturity through 2012. The coupon rate may be raised from 9.89% to 18% per annum, the Vedomosti newspaper said.

www.planetretail.net