Russian residential property developer PIK has reached an agreement with Sberbank, the group's largest creditor, to extend its existing debt repayment schedule with no change in interest rates.
Russian residential property developer PIK has reached an agreement with Sberbank, the group's largest creditor, to extend its existing debt repayment schedule with no change in interest rates.
PIK Group outstanding debt amounted to RUB 47.3 bn (EUR 11.8 bn) of which RUB 1.5 bn represented accrued interest payable. In the second half of 2012, PIK continued servicing its debt in due course and managed to cut RUB 1.5 bn of excess debt. In the third quarter alone PIK repaid RUB 0.7 bn to Sberbank.
The company's total outstanding debt currently amounts to RUB 44.3 bn.
As part of the new agreement with Sberbank, the company has committed to pay RUB 0.3 bn and RUB 1.4 bn for the fourth quarter of 2012 and for 2013 respectively. This compares to RUB 16 bn previously agreed, with the difference of RUB 14.3 bn being extended into 2014.
