Petropavlovsk defaults on coupon payment for 8 1/8% notes due 2022

Chicago, May 16 – Petropavlovsk plc defaulted on the coupon payment due on May 14 in the amount of $12.36 million for its 8 1/8% guaranteed notes due 2022 issued by Petropavlovsk 2016 Ltd., according to a press release.

The is a result of the inability of the group to extract cash from its Russian subsidiaries in the current environment and the previously announced acceleration of the term loan between the company and UMMC-Invest (formerly with Gazprombank).

There are $304 million outstanding on the notes.

The board has assessed that it will be challenging to refinance the notes in the present circumstances.

The company is exploring options, including the sale of the company’s entire interests in its operating subsidiaries as soon as practically possible.

Petropavlovsk is a major integrated Russian gold producer.

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