VK announced the risk of default in company

VK (formerly Mail.ru Grou) warned of a possible default in the company. It is possible due to the suspension of trading on the London Stock Exchange, which may lead to the desire of shareholders to sell their securities when trading resumes.

A press release on the current situation was published on the official website of the company the day before. It talks about the consequences of suspending trading in global depositary receipts (GDRs). This happened on March 3, and until March 16 inclusive, the established limit for the situation is in effect.

This is followed by a "delisting event" whereby bondholders will be entitled to redeem the value of their securities, along with any interest due.

Such notice of sale is irrevocable and must be executed.

However, the company does not have confidence in the ability to meet all potentially stated requirements. This is due to the peculiarities of the distribution of funds, some of which are not only stored in foreign currency, but also located both in Russia and abroad. At the moment, the situation can only exacerbate the problem.

However, VK noted that the company intends to act in good faith and make attempts to reach agreements with holders of securities. Despite this, VK does not exclude that the negotiations may fail, which in turn will lead to the risk of default.

Earlier, Yandex also announced the risk of default. Tap the link and read more about this.