Clarifying the information concerning the redemption of euro bonds by ISD Corporation
In view of the information published in some media sourceson September 23, 2010 as for the fact that ISD Corporation has not redeemed euro bonds, the Corporation deems it necessary to make the following announcement.
ISD Corporation acknowledges the fact that on September 23, 2010 the euro bonds redemption hasn’t been effected. The bonds have been issued by a special project company with the goal of financing the activity of steel mills belonging to ISD. However the above-mentioned formal violation of the conditions of the prospectus for euro bond issue was easily predicted and the international banks which financed the activity of the Corporation, among them the banks which are the holders of euro bonds had been informed of the situation.
As it had been announced earlier, alongside with other industrial companies which have experienced the negative influence of the world financial and economic crisis, ISD Corporation has been actively negotiating with the pool of international banks as for the restructuring of credit portfolio. The negotiations are in the final stage. One of the generally accepted conditions of conducting negotiations as for the restructuring of a credit portfolio in the international financial, legal and business practice is a temporary suspension of indebtedness repayment to absolutely all financial creditors by the time the final agreement as for the conditions of restructuring is reached with all the creditors.
ISD Corporation treats its financial obligations in good faith; it values collaboration with international banks and investors and believes in mutually rewarding cooperation in the future.