28 April 2016
The management of Far-Eastern Shipping Company PLC (the “Company”), and its subsidiaries (together the “Group”), announced today that it is undertaking a strategic review of the Group’s capital structure in light of the Russian macroeconomic environment and impact of the Rouble devaluation.FAR-EASTERN SHIPPING COMPANY PLC
75, Sadovnicheskaya Street, Moscow, Russia, 115035
FAR-EASTERN SHIPPING COMPANY PLC ANNOUNCES STRATEGIC REVIEW OF THE CAPITAL STRUCTURE
28 APRIL 2016
To assist in this process, the Company has retained Houlihan Lokey (Europe) Limited (“Houlihan Lokey”) as financial advisor and Cleary Gottlieb Steen & Hamilton LLP as legal advisor. The review will be focused on the Group’s balance sheet and is not intended to impact the Group’s operations, employees, partners, suppliers or trade creditors.
While the Company is conducting its review, the Company may determine that, although it is able to pay its debts as they fall due, it is in the interest of all its stakeholders to defer interest payments on certain financings including the coupon payment due on the 8.00% Senior Secured Notes due 2018 and 8.75% Senior Secured Notes due 2020 on 4 May 2016 (the “Eurobonds”), and will continue to monitor its liquidity position. Due to the terms of certain financing arrangements of the group the Company is not currently in a position to engage in any negotiations with holders of the Eurobonds and will make another announcement when that position changes.
Enquiries related to this announcement should be addressed to Houlihan Lokey using the contact details provided below.
Houlihan Lokey Contact Details:
Gijs de Reuver
+44 207 747 2710
+44 207 747 2726
About the Company:
The Company is one of the leading privately-owned transportation and logistics companies in Russia with operations in ports, rail, integrated logistics and shipping business. FESCO provides door-to-door logistics solutions and controls almost all steps of the intermodal transportation value chain. The majority of the Company’s operations are located in the Russian Far East.
For more information on the Company, please contact:
FESCO IR Department
+7 495 780 6001
These materials may contain forward-looking statements regarding future events or the future financial performance of Far-Eastern Shipping Company PLC (the “Company”). You can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance or outcomes and that the Company’s actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. Any forward-looking statements that are made in the materials speak only as at the date of this announcement. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian freight rail market, as well as many other risks specifically related to the Company and its operations, including those discussed in these materials.
These materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended (the "Securities Act"). Any securities mentioned herein have not been and will not be registered under the Securities Act, and no public offering will be made in the United States. all publications