(Reuters) – Russian internet group VK on Monday appointed financial advisers for proposals to be made to holders of its $400 million bonds who seek to demand their redemption rights, just weeks after flagging issues with servicing its debt.
The London-listed firm, which also runs email provider mail.ru and has operations in gaming and education technology, saw its shares plummet following a U.S. sanction on its chief executive that dramatically changed VK’s prospects.
The company said on Monday it has appointed Aspring Capital and Serdika Financial Services to develop options for holders of its senior unsecured convertible bonds due 2025 to address events “outside the control of the company”.
The West has imposed heavy sanctions on Russian billionaires, companies and officials in an attempt to force Moscow to withdraw from Ukraine after its invasion of the neighbour on Feb. 24. Russia has called its actions a “special military operation”.
VK’s shares have been banned from trading since March 3.
The company said earlier this month that it may not have enough liquidity to pay its debt holders if most of them demand to redeem the debt – which they are entitled to in the event that trading of its GDRs remained suspended for 10 consecutive days.
(Reporting by Amna Karimi in Bengaluru; Editing by Maju Samuel)
