Ekosem-Agrar AG Calls for Bondholders' Participation in Crucial Restructuring Vote

Ekosem-Agrar AG, a prominent German holding group for Russian agricultural giant EkoNiva, has set dates for its second noteholders' meetings on June 3 and 4, 2024. These are crucial for the restructuring of its ESA bonds issued in 2012/2027 and 2019/2029, owing to insufficient quorum during the initial meetings in May 2024.

The pending restructuring involves significant changes, including the sale of bonds at EUR 300 each, against their nominal EUR 1,000 value. This move comes amid drastic shifts in the German tax landscape, risky business sustainment in Russia, and worrisome economic projections. The plan, combining the German holding and Russian operations, aims at minimalizing the potential total loss to bondholders amidst geopolitical and economic turbulence.

Renowned groups like the Noteholders‘ Advisory Committee, Schutzgemeinschaft der Kapitalanleger (SdK), and the Joint Representative have endorsed this restructuring strategy, urging bondholders to actively engage in the forthcoming votes. The bond sale and corporate adjustments are poised against a backdrop of seeking investments up to EUR 100 million in Russia, contingent on successful bond restructuring.