XXI Century delays for 6M USD 20 mln payment of Eurobonds Principal

Real estate developer XXI Century announced yesterday that at an adjourned noteholder meeting, an extraordinary resolution was approved, implying a delay in its first USD 20 mln principal payment on its notes from November 24, 2010 to May 24, 2011 (62.88% of noteholders were present on the meeting, 96.8% of which voted for the decision). Mykyta Mykhaylychenko: As the company is now in a very distressed situation and can find no sources of fresh equity (neither from present or new investors), we see this as just a temporary solution. We believe it will be difficult for investors to avoid some haircuts and/or partial conversion into equity and/or some other kind of restructuring, rather than simple maturity prolongation with a coupon rate increase, eventually. The bonds are now traded at close to 10% of par.