RBC Falls 10% on Write-Off Report

RBC Information Systems, the media company that owns the only Russian-language business television channel, declined 10 percent in Moscow trading Friday on a report that it asked creditors to write off part of its bonds.

RBC owners asked holders of the company's 3 billion rubles ($93 million) of bonds due in March and July to write off 80 percent of the total and convert the remainder into credit notes due 2010 and 2012, Vedomosti reported, citing two unidentified investors.

"We see the proposed restructuring terms as unattractive for RBC bondholders," Anna Kurbatova, an analyst at UniCredit, wrote in a note. "The risk of a default has increased substantially."

The new notes would be convertible into 30 percent of RBC shares, and the company would sell new stock for that, Vedomosti said.

RBC spokesman Pavel Mironov declined to comment.