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6 Jan 2009 17:00
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Urals Energy Public Company PCLĀ
("Urals Energy" or the "Company")
Update on Discussions and Financing
Urals Energy today announces that discussions regarding a potential offer for the CompanyĀ with a third partyĀ have ended and that no offer has been made.
The Company hasĀ discussed and will now seek toĀ agree with Sberbank that, in this circumstance, it willĀ proceedĀ to undertakeĀ a disposal ofĀ itsĀ shares in ZAO Dulisma andĀ inĀ Taas Yuriakh, its two strategic assets in East Siberia,Ā to SberbankĀ orĀ aĀ subsidiary,Ā in discharge of its obligationsĀ to SberbankĀ under two separate loansĀ totaling $630 million and securedĀ by pledgesĀ by Urals Energy ofĀ itsĀ sharesĀ inĀ Taas Yuriakh andĀ 99% ofĀ the shares inĀ ZAO Dulisma. Certain trade debt incurred by Taas Yuriakh and ZAO DulismaĀ is intendedĀ toĀ be transferred along with the said companies in such proposed transaction.
The CompanyĀ has been informed by Sberbank that, with immediate effect, all rights of claim under its existing loans to wholly owned Company subsidiaries have beenĀ assignedĀ to Sberbank Capital LLC, a 100% owned subsidiary of Sberbank. In line with this assignment Sberbank has transferred to Sberbank Capital all of its rightsĀ as the Secured Party in relation to the loans.
The company has also been informed by Sberbank that it has waived its rights to charge increased default interest for non-timely repayment of the loans at their original maturity dates (November 26 and November 14, 2008,Ā respectively)Ā for the periodĀ until December 31, 2008. Currently the amount outstanding under the $500 million loan is the principal only. Under the $130 million loan the amount outstanding is $132.3, consisting of the principal and accrued interest.
The Company will seek to finalise the proposals for the discharge of its obligations to Sberbank as soon as possible.Ā The CompanyĀ intends shortly toĀ give notice of a shareholder meeting to approve the proposals and will publish a circular setting out the proposalsĀ and other information on strategic optionsĀ forĀ continuing in business.
The Company's liquidity position remains constrained and discussions with a third party regarding a short term working capital facilityĀ are ongoing.Ā The Company will now seek a smallĀ loanĀ to maintain liquidity untilĀ proposals with SberbankĀ can be finalised.Ā At present, the Company has overdue amounts payable toĀ DulismaĀ contractors and suppliers that must be partly satisfied by the end of January 2009Ā and which it will be unable to meet without the granting of this loanĀ or other sources of cash not currently in hand.
Further announcements will be made in due course.
6 January 2009
Enquiries:
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Pelham PR |
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Evgeniy Chuikov |
+44(0)20 3008 5506 / +44(0)7894 608 606 |
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Mark Antelme |
+44(0)20 3178 6242 / +44(0)752 5951 011 |
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