Projects

SMARTS
Telecommunications operator

US$200 million

Deal size

2014 – 2015

Project duration

Russia

Geographies

SMARTS was the largest independent regional telecommunications operator, serving approximately 2 million users

By the time PCG was hired, SMARTS was in default on several loans owed to Russian banks. PCG’s task was to negotiate with the banks and sell off all the assets either as a whole or in parts. The asset sale coincided with a conflict among shareholders, and as a result, it took the owners a long time to sell their shares.

In February 2014, Proxima Capital Group was hired as a consultant for the asset sale. As a result:

An agreement was reached with creditors to extend repayment deadlines so as to have more time to sell the assets
Sale of the part of the company’s assets to Vimpelcom
Sale of the part of the company’s assets to MTS
Sale of the part of the company’s assets to Megafon
Assistance to shareholders in reaching an amicable agreement

Role
PCG