Independent Oil and Gas Company looks to postpone redemption of Alliance Oil’s bonds

As the Kommersant has got to know,the Independent Oil and Gas Company (NNK) of the ex-president of Rosneft, Eduard Khudainatov is going to restructure the bonds of Alliance Oil, purchased for $350 million in the past year. The company offered to investors to postpone the term of payments from this March to 2019. Alliance Oil needs funds for development, including for the reconstruction of the Khabarovsk refinery, but the tax manoeuvre and weakening of the ruble have had a negative impact on its financial situation. It will be difficult to come to an agreement with the investors, and additional concessions may be required from NNK, experts say.

At the end of last week, NNK applied to the holders of the Eurobonds of its oil company Alliance Oil with a request to increase the maturity of the securities - from March 2015 to March 2019, sources on the market told the Kommersant. NNK explains the restructuring with the fact that "the extension of the short-term obligations will allow the company to provide the necessary level of liquidity to overcome the complications of the current market situation," says one of the Kommersant’s interlocutors. NNK itself declined to comment yesterday.