The owner of the Westfalika network allowed the actual default on the bonds

Shoe retailer OR Group announced a permanent default on the BO-07 series of bonds. The main shareholder of this issue (99%) is PJSC Promsvyazbank, the company said in a statement.

“The bond issuer OR LLC, one of the Group’s subsidiaries, violated its obligations to the bondholders during the technical default period (delayed to fulfill the obligation for a period of more than 10 days work). The expiration date of the default value is February 3, 2022”, he explained in the company.

In total, 500 bonds were issued as part of the issue in 2017, with a face value of two million rubles. In 2018-2021, the company will pay part of the BO-07 loan by buying 204 bonds worth RUB 408 million from the market in the framework of non-cancellable offers.

The company tried to achieve debt restructuring, but negotiations with Promsvyazbank did not lead to anything.

The inability to pay the debt in the company was explained by “pressure in the consumer market” related to the coronavirus disease. The company’s revenue in 2021 was down 21%.

The OR Group determined that they are meeting their obligations on other debts: they are paying interest on current debt and paying coupons for all bond issues in the market.

The OR Group is a trading platform that includes the market and an ecosystem of services. The company operates a network of sales and services under the Westfalika brand: more than 7,500 locations in 308 cities of Russia.


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