Feb. 17, 2022

Proxima Capital Group became a consultant to OR GROUP

on the restructuring of the Group's debt portfolio

Moscow, February 17, 2022 – The investment company Proxima Capital Group became a consultant to OR GROUP (PJSC "ORG", formerly "Shoes of Russia") on comprehensive restructuring of the Group's debt portfolio totaling more than 13 billion rubles. OR GROUP is included in the list of backbone enterprises in the field of light industry. At the moment, the Company has difficulties with servicing debt obligations. On February 3, 2022, the Group announced an actual default on exchange-traded bonds in the amount of 592 million rubles. The issuer of this issue is LLC "OR", a subsidiary of PJSC "ORG". The main holder of the securities is Promsvyazbank, with which an agreement on debt prolongation failed to be reached within the period stipulated by the terms of the bond issue placement, which led to default. There are eight traded bond issues in circulation on the Moscow Exchange with nominal value of these issues totaling to 5.7 billion rubles. The main creditor banks of the Group are VTB, Sberbank and Promsvyazbank.

The restructuring project provides for the prolongation of the Group's existing credit lines and the development of options for changing the terms of repayment of bond loans of LLC ‘OR’, a subsidiary of PJSC ‘ORG’.

"Working with companies in a difficult financial situation is one of the key specializations of Proxima Capital Group,- said Sergey Bryakin, Director of Distressed Assets and Debt at Proxima Capital Group. - We help interested parties - the borrower and the lender - to understand the actual condition of a distressed asset and find the best strategy through which it is possible to stabilize the business and prevent the loss of its value. OR GROUP is a public company, so at present it is very important to return investment attractiveness the soonest possible: help optimize debt servicing costs and release resources for operational activities, including the implementation of the Company's plans to transform the business model."

Anton Titov, Director of OR GROUP, commented: "Our priority now is to maintain operational activities and implement plans to transform the business model, which will be possible if timely and constructive agreements are reached between creditors and the Сompany. We are confident that the expertise of Proxima Capital Group and its experience in the field of financial recovery of businesses will allow us to develop the most effective solution to the current crisis, preserve the value of the business for shareholders and maximize returns for creditors under tight time constraints. We have already started negotiations with the main creditors and will continue to inform the investment community about the progress of the project."

OR GROUP (MOEX: ORUP) is a modern trading platform on the basis of which the Company develops a marketplace westfalika.ru and the ecosystem of services and manages a network of retail and service outlets under the Westfalika brand, numbering more than 730 objects in more than 300 cities of Russia.

In October 2017, OR GROUP raised 5.9 billion rubles during an IPO on the Moscow Stock Exchange, the issuer is PJSC “ORG”.

In accordance with the audited financial results of the Group under IFRS, in 2020 revenue amounted to 10.8 billion rubles, net profit - 0.6 billion rubles, EBITDA - 2.3 billion rubles.

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