MTS have exposed the London accountHigh court of London has taken out definition about arrest of property MTS Finance, 100 which % belong to the Russian MTS. An occasion to an interdiction to dispose of company actives is the decision of the International arbitration tribunal in London, which else in November of last year has obliged MTS Finance to realise the second part of an option under the repayment at Nomihold Securities 49 % of the Kirghiz cellular operator “ Bitel “ for $176 million
MTS Finance has received from High court of London definition about imposing of an interdiction for the order property. “ the instruction has been taken out in frameworks obespechitelnyh measures under the decision of arbitration court in favour of Nomihold Securities Inc. From November, 11th, 2010 which contained the requirement to MTS Finance on payment of $170 million plus a legal cost and percent, and also $5,88 million in the form of dividends. In addition the instruction specifies that MTS Finance has no right to territories of England and the Wales to dispose of actives for the sum over $208,1 million “ - it is told in MTS message.
default of the decision of the London arbitration can become the basis for a default under MTS eurobonds. In the company assert that court definition will not affect execution of obligations to holders of eurobonds. At present in circulation there are two releases of eurobonds of the company for a total sum of $1,15 mlrd - on $400 million with repayment in January, 2012 and on $750 million with repayment in June, 2020. In the beginning of week of MTS declared the offer on the preschedule repayment of papers of the first release (profitableness - 8 % annual). Now the company carries on negotiations with holders of papers of release on $750 million (the rate - 8,6 % annual) on change kovenant that if at MTS Finance there will be problems with judgement execution, it was not the basis for a default.
“ Definition removal does not concern MTS and will not interfere with offer realisation under the repayment of bonds at holders or to reception of their consent to change of conditions of maintenance of bonds for the $750 million sum “ - it is told in MTS message.
do not see the bases for a panic and analytics Fitch. In their opinion, the judgement does not render considerable influence on credit status of MTS. “ the importance of a judgement against MTS Finance is not essential and is equivalent less than 5 % of indicator OIBDA at MTS for 12 months - on the end the third quarter 2010. In particular, on the end of September, 2010 on balance of MTS there were $2,2 mlrd money resources “ - consider in Fitch.
MTS has bought 51 % of the Kirghiz operator “ Bitel “ in December, 2005 at Nomihold Securities, however almost at once under the decision of the Supreme court of Kirghizia has lost the rights to this active: it has passed to the Russian Joint-Stock Company “ Rezervspetsmet “. In 2006 the property complex and user`s base of the operator has passed “ Skye Mobajlu “. Formally this company belongs to the Cyprian offshore Crowell Investments Limited, but since 2008 a network of the operator operates Kazakh “ a daughter “ “ Vympelcom “ “ Penalties - Bodies “ and services appear under a brand “ a Biline “. Moreover, from the beginning of last year “ Vympelcom “ consolidates results “ Skye Mobajla “ in the reporting. Following the results of three quarters 2010 the gain of this company has made $82,3 million, the user`s base has reached 1,76 million
As already informed “”, claim Nomihold Securities on execution MTS Finance of an option for the rest repayment “ Bitela “ the London international commercial arbitration has satisfied in November of the past, and in January this decision was supported by the London chamber of the International arbitration court. MTS in March, 2007 has written off expenses for 51 % “ Bitela “ and also $170 million which should pay on an option.