4 ms·

Wow, if Yandex is shutdown on NASDAQ for more than 5 days, they have to repay more than $1.25 billion in debt. Seems pretty fast.

brokensegue 5y ago
it's already been 5 days by my count (hasn't traded since last Friday)
- Scoundreller 5y ago
  I guess we’re now at step2: > In the event that such redemption right was triggered, we would be required to issue a notice within five calendar days informing the holders of the Notes of their redemption rights. Given: > The Yandex group as a whole does not currently have sufficient resources to redeem the Notes in full Yandex seems destined to bankruptcy and/or just walking away from the west. Uncertain who the $1.25b are owed to.
  - brokensegue 5y ago
    Just because the right to redeem exists doesn't mean it will be used. Creditors might be unlikely to redeem if it they knew it would result in a default.
    - stefan_ 5y ago
      Except their claim is over a holding company that has lost all hold over it's actual profit generating subsidiaries: > In the event that we were prevented from distributing additional funds from our Russian subsidiaries to our Dutch parent company, Yandex would not have sufficient resources to redeem a majority of the Notes Better take the 50% haircut than the long game that gets you nothing.
      - Scoundreller 5y ago
        At least 50% haircut.
    - 908B64B197 5y ago
      Would be a shame if the US government forced creditors to redeem because of the sanctions.
      - whimsicalism 5y ago
        It would be ridiculous.
        908B64B197 5y ago
        Why so? There's a risk foreign currency held by Yandex might be sold to RUB per a Russian government order. I'd rather have shareholders cash out than have these assets fall into the hands of sanctioned entities.
    - paxys 5y ago
      If it was a single creditor they could evaluate the situation and make an optimal decision. If it's a group of them, now you have a prisoner's dilemma. You don't want to be the last one pondering your move when everyone else has already redeemed their share and left the bag empty.
    - vmception 5y ago
      but any one of us can buy one of the bonds and trigger the right theyre probably trading at a substantial discount!
  - vmception 5y ago
    Double dog dare you to buy their bonds at the discount and trigger the redemption right
dougSF70 5y ago
And they only have $625million of cash, of which only a portion is outside of Russia. They also state they may not be able to raise the balance of the note...this is a perfect shitstorm.
- deleted 5y ago
  [deleted]
- laurent92 5y ago
  What if step 2 is Russia declaring that, as a sanction against economic sanctions, Yandex is nationalized? Can it avoid duty to existing stockholders?
  - dougSF70 5y ago
    Possibly, but it is registered in Amsterdam and listed in the USA. Perhaps it works the Russian government bails them out and takes over as a result.

brokensegue 5y ago

it's already been 5 days by my count (hasn't traded since last Friday)

Scoundreller 5y ago
I guess we’re now at step2: > In the event that such redemption right was triggered, we would be required to issue a notice within five calendar days informing the holders of the Notes of their redemption rights. Given: > The Yandex group as a whole does not currently have sufficient resources to redeem the Notes in full Yandex seems destined to bankruptcy and/or just walking away from the west. Uncertain who the $1.25b are owed to.
- brokensegue 5y ago
  Just because the right to redeem exists doesn't mean it will be used. Creditors might be unlikely to redeem if it they knew it would result in a default.
  - stefan_ 5y ago
    Except their claim is over a holding company that has lost all hold over it's actual profit generating subsidiaries: > In the event that we were prevented from distributing additional funds from our Russian subsidiaries to our Dutch parent company, Yandex would not have sufficient resources to redeem a majority of the Notes Better take the 50% haircut than the long game that gets you nothing.
    - Scoundreller 5y ago
      At least 50% haircut.
  - 908B64B197 5y ago
    Would be a shame if the US government forced creditors to redeem because of the sanctions.
    - whimsicalism 5y ago
      It would be ridiculous.
      - 908B64B197 5y ago
        Why so? There's a risk foreign currency held by Yandex might be sold to RUB per a Russian government order. I'd rather have shareholders cash out than have these assets fall into the hands of sanctioned entities.
  - paxys 5y ago
    If it was a single creditor they could evaluate the situation and make an optimal decision. If it's a group of them, now you have a prisoner's dilemma. You don't want to be the last one pondering your move when everyone else has already redeemed their share and left the bag empty.
  - vmception 5y ago
    but any one of us can buy one of the bonds and trigger the right theyre probably trading at a substantial discount!
- vmception 5y ago
  Double dog dare you to buy their bonds at the discount and trigger the redemption right

dougSF70 5y ago

And they only have $625million of cash, of which only a portion is outside of Russia. They also state they may not be able to raise the balance of the note...this is a perfect shitstorm.

deleted 5y ago
[deleted]
laurent92 5y ago
What if step 2 is Russia declaring that, as a sanction against economic sanctions, Yandex is nationalized? Can it avoid duty to existing stockholders?
- dougSF70 5y ago
  Possibly, but it is registered in Amsterdam and listed in the USA. Perhaps it works the Russian government bails them out and takes over as a result.