Restructuring the debts of one of the largest shoe retail chains in Russia and the CIS
Projects
Carlo Pazolini
Shoe retail chain
> US$120 mln
Indebtedness
2016 – 2017
Project duration
Russia
Geographies
Between 2010 and 2014, the company received a number of foreign currency denominated bank loans to develop its retail network. The company’s total debt exceeded US$120 million. After the sharp devaluation of the Russian ruble at the end of 2015, the company became unable to service the debts it took on earlier.
Between 2016 and 2017, the PCG team bought out the company’s debts to Sberbank, Alfa Bank, Promsvyazbank, and OTP Bank, with a total nominal value of US$85.4 million, at an average discount of roughly 70%.
The remaining US$37.5 million in debts owed to UniCredit, Avtotorgbank and B&N, will be written off or bought out at a discount of more than 90%.
Between 2016 and 2017, the PCG team bought out the company’s debts to Sberbank, Alfa Bank, Promsvyazbank, and OTP Bank, with a total nominal value of US$85.4 million, at an average discount of roughly 70%.
The remaining US$37.5 million in debts owed to UniCredit, Avtotorgbank and B&N, will be written off or bought out at a discount of more than 90%.
Since 2015, Proxima Capital Group has worked to restructure the company’s debt. In particular, we:
Reached an agreement with creditors to discount the company’s debts
Bought out the company’s debts
Made sure the company continued ongoing operations
Role
PCG