Yukos Says Societe Generale-Led Banks May Seize Export Revenue

Articles: Yukos Says Societe Generale-Led Banks May Seize Export Revenue

Posted by admin on Monday, July 05, 2004 - 12:09 AM

OAO Yukos Oil Co., Russia's biggest oil exporter, said a Societe Generale SA-led group of banks may seize part of its export revenue because the company may be in default on a $1 billion loan.
They notified us about the possible default,'' said Yukos spokesman Alexander Shadrin in a telephone interview. ``They may arrest accounts that receive part of our export revenue, but this isn't bankruptcy, yet.'' Russian law enforcement officials on Saturday removed computer servers from the company's headquarters in central Moscow, as part of a widening investigation into the company. The police raid came two days after the government said it's seeking 99.4 billion rubles ($3.4 billion) in back taxes from the company within five days. In April, Yukos said it may default on $2.6 billion in loans after creditors, including Societe Generale, Citigroup and Group Menatep, told the company they might seize some revenue to cover interest payments. The notification is a necessary step if Yukos's creditors decide to take legal action to recover the money they are owed, the Financial Times said, citing Yukos's Chief Financial Officer Bruce Misamore. Yukos is making early payments on the $2.6 billion loans it took out last year, Misamore said June 21. After paying back $300 million ahead of schedule by May 31 it pledged to pay an additional $190 million earlier than originally agreed, he said. The early payments are being paid in proportion to the size of the loans.

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