Russia’s Vneshprombank notes trustee eyes claim; delisting possible

By Caroline Salls

Pittsburgh, May 6 – The trustee for notes issued to finance a loan for Foreign Economic Industrial Bank Ltd. (Vneshprombank) plans to arrange for a claim to be submitted in Vneshprombank’s liquidation for principal and interest outstanding under the 9% loan participation notes due 2016 issued by VPB Funding Ltd., according to a notice from trustee Citibank, NA, London Branch.

As previously reported, the trustee announced in March that Vneshprombank was subject to a liquidation process, and state corporation Deposit Insurance Agency was appointed as liquidator.

The deadline for submitting claims in the liquidation is May 18.

Citibank said it has not yet been instructed by holders of at least 25% of the outstanding notes, but it has determined that it is in the interests of the noteholders as a class for the trustee to take limited actions to preserve the interests of the noteholders in Vneshprombank’s liquidation.

According to the notice, the trustee is not obligated to take any action unless it is indemnified, prefunded and/or secured to its satisfaction against all liabilities, proceedings, claims and demands to which it may thereby become liable and all costs, fees, charges and expenses which may be incurred by it in connection with the action.

As a result, the trustee said it may not be able to file, and may have to abandon, any claim in the liquidation if it has grounds for believing the repayment of any liability incurred or adequate indemnity against, or security for, any related risk or liability is not reasonably assured.

In addition, Citibank said the Irish Stock Exchange has informed VPB that the listing of the notes may be suspended if the company is unable to assess accurately its financial position and inform the market accordingly.

The trustee said VPB has no available funds and has informed the trustee that it will be unable to pay the next annual listing fee to maintain the listing of the notes. Citibank said it is therefore likely that the notes may be delisted when the fee is due between Oct. 12 and Oct. 16.

© 2015 Prospect News.
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