Fesco head planning to present creditors group’s business model in June

02 June Interfax
Fesco Group is expecting to present its business model to creditors in June, group president Alexander Isurin said during an interview with Interfax at the Strategic Partnership 1520 forum.

«The world has logistically changed in comparison with three years ago: income has fallen, deep sea rates are at an unprecedented low level, previous models aren’t working," he said.

«We will show some expectations for the market on the eight-year horizon," the president said. He said that the group is keeping its main business areas: port, railway, liner and logistics, bunker. However the railway and bunker divisions will be changed. In particular, Fesco is focusing on boxcars and fitting platforms. He said that Fesco has already left its Ro-Ro business (the company sold the vessel for the transport of rolling cargo) and from the operation of open cars (they were transferred for rent to Neftetransservice). The group will concentrate on the development of container lines, new logistical solutions, in particular 3PL. In the last four months the company has opened three new routes to Central Asia and one route to Vladivostok. Due to the market decline and the devaluation of the ruble, Fesco has been put in a difficult position. The company defaulted on two coupon payments for bonds and now is in the process of talks with creditors. «Our goal is to hold talks with bondholders," Isurin said. «There should not be such an option as not coming to an agreement. I very much hope that there will not be the company’s bankruptcy from creditors. I know precisely that the company’s bankruptcy is not a way out for anybody," he said.

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