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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.
by 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 agoExcept 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 agoAt least 50% haircut.
- 908B64B197 5y agoWould be a shame if the US government forced creditors to redeem because of the sanctions.
- whimsicalism 5y agoIt would be ridiculous.
- 908B64B197 5y agoWhy 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 agoIf 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 agobut any one of us can buy one of the bonds and trigger the right theyre probably trading at a substantial discount!