VTB may write off 30% of Transaero's debt
VTB Bank may write off 30% of struggling airline Transaero's debt when the bank discusses with the national flag carrier a debt restructuring plan soon. &nbsp;Of the RUB 12bn ($174m) owed by the airline RUB 9bn ($130m) are secured by state guarantees. One of its creditors, Sberbank, has offered to write off the unsecured 30% debt, with VTB's CEO Andrei Kostin stating, "we will support (the write-off), there is no other way".&nbsp;
Russia’s VTB Bank may writes off 30% of Transaero’s debt

MOSCOW, Sep 7 (PRIME) -- VTB Bank, Russia’s second largest bank, does not rule out writing off a third of troubled airline Transaero’s debt, VTB Bank CEO Andrei Kostin told PRIME on Monday.

Debt restructuring talks with national flag carrier Aeroflot will be held very soon with participation of the government, and all the sides – Aeroflot, the government and banks – will take over some of the troubled airline’s liabilities. Out of the airline’s 12 billion ruble debt, 9 billion rubles are secured by state guarantees, and biggest bank Sberbank, one of Transaero’s creditors, offered writing off the unsecured 30% debt, he said.

“I think, we will support (the write-off), there is no other way,” Kostin said.

VTB also thinks that Transaero’s leasing and credits should be merged into one restructuring deal, but Aeroflot said it does not need the bulk of planes leased by Transaero, “even if these planes are modern, new foreign liners, including Dreamliner,” Kostin said, adding that intensive work to solve this problem is being carried out.

On September 3, Aeroflot’s board of directors approved the company’s participation in a bail out the troubled airline. Sberbank will be Aeroflot’s financial consultant under the deal. Previously, Aeroflot said it will purchase 75% plus one share in Transaero for 1 ruble.

(67.6850 rubles – U.S. $1)

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