1st Jul 2016 07:58
LONDON (Alliance News) - Russia-focused property developer AFI Development PLC on Friday said it has decided not to make its quarterly principal payments to Russian lender VTB Bank PJSC, after it applied for a deferral as the pair continue talks on amending the company's debt facilities.
AFI said Executive Chairman Lev Leviev is still in talks with VTB on the company's facilities but as a consequence of the ongoing talks, AFI has applied to VTB to be granted a deferral on its quarterly principal payments which fell due on June 30.
AFI said it has decided not to make the payments as it awaits approval for the deferral from VTB and said the lender has been informed of the decision.
AFI noted the delay to making the payments constitutes a breach of the loan facility agreements and does allow for VTB to claim immediate repayment of the outstanding amounts on the loan.
Shares in AFI were up 0.9% to USD0.14 Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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