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. Last Updated: 07/27/2016

Uneximbank Fights to Win Over Creditors




Having lost its operating license last week, Uneximbank faces a tough battle to win over its creditors in a very short span of time, bank officials said Tuesday.


"Restructuring talks should be finalized within two months," said Mikhail Prokhorov, Uneximbank board chairman.


Uneximbank officials have been critical of the Central Bank's decision to strip the institution of its banking license, saying such a move would complicate talks with creditors, to whom the bank owes $800 million to $1.3 billion.


"Such a move provokes creditors to disrupt the negotiating process," said Vladimir Ryskin, first deputy chairman of Uneximbank.


The time factor could come into play against Uneximbank if the talks last for a long time, Ryskin added.


The bank refused to disclose details of the offer they made to creditors last week. "Information on net present value of the offer could be used by people who trade with our debts," he said.


Uneximbank has so far agreed with its creditors on a payment structure, which should include a cash down-payment, a new issue of debt securities and the establishment of special-purpose vehicles to allow particular assets to generate cash flow.


Uneximbank is scheduled to meet with its creditors next Monday.


The bank has been more dead than alive for months, having ceased to conduct normal banking operations as it focused on chasing after its own debtors, Ryskin said.


Its main costs during this period were the $3 million paid to its foreign consultants over the past six months. International law firm Hogar & Hartson acts as legal adviser to Uneximbank, and Fleming UCB, a Russian subsidiary of Robert Fleming Co., acts as its financial adviser.