Utair proposes debt-to-equity swap as part of financial restructuring

Shareholders of Russian carrier Utair are to consider a debt-to-equity swap as part of a continuing restructuring of the airline’s finances. Utair says shareholders including AK-Invest and Neft-Consulting as well as carrier group’s own maintenance division Utair Engineering are set to take part in the swap. “The airline’s debts to these lenders [will be] converted into shares,” says the carrier. Utair’s supervisory board, in a 3 June meeting, voted to put a proposal to shareholders seeking an increase Utair’s authorised capital through the placement of additional shares. It says over 4.19b shares will be included in the placement, with shareholders having the pre-emptive right to purchase the stock at Rb3.25 ($0.04). The company says the form of payment for the additional shares will be cash, including the possibility of paying for the stock by “offsetting monetary claims”. “We are entering the final stage of restructuring,” says general director Andrei Martirosov. “For its successful completion, it is extremely important to secure the approval of shareholders.”<br/>