February 25, 2013, 07:47 / Finance

Renaissance Group owes money to Onexim

Even having sold key assets to the Onexim group, Renaissance Group still owed it $93 million, and its total debt was $272 million. Anton Trifonov has already defaulted on part of the debt

M. Stulov / Vedomosti

The investment bank Renaissance Capital was faced with a critical liquidity situation, and the deal with Onexim was the only way for it to continue operating,” Renaissance Group admits in a presentation to creditors dated February 21 (available from Vedomosti). Such a presentation was sent out, a person close to the group confirmed. “The main condition of the deal was the assumption by Onexim of a significant part of the debts of RCHL (the parent company for the financial assets of Renaissance Group - Vedomosti) and the forgiveness of RCHL’s debt [to its former banking assets],” the presentation says.

This is true, co-chairman of the board of Renaissance Capital Igor Vain (returned to the investment bank after the deal with Onexim) confirmed to Vedomosti. Since then, Onexim has poured “significant funds” into Renaissance Capital – “hundreds of millions of dollars,” Vine clarifies, and is ready to “provide it with the necessary financial support,” the document says. Now the situation is completely under control and all obligations are being fulfilled in full, Vine emphasizes. A Onexim representative declined to comment.

Despite the “forgiveness,” Onexim remains the largest creditor of the Renaissance group. She owes him $93 million, and in total, after the deal with Onexim, she was left with debts of about $272 million, which cannot be serviced without restructuring, the presentation says. Renaissance Group owes almost the same amount as Onexim – $90 million – to a certain “commercial bank from the CIS”. The next largest debt is $57 million in global notes; now its management is “trying to restructure” this debt. Renaissance Group owes another $33 million to holders of notes sold during a private placement.

The group has already defaulted on some of them. “As of February 18, securities worth $17.5 million were in default,” the presentation says.

Taking into account obligations to investors of the Renaissance Partners fund, the group will have to pay $305 million, and in total in 2013–2015, as management expects, $335 million.

The group's assets are estimated at $276 million: $89 million in the CIS and Europe, $171 million in Africa and $16 million in accounts. Upon liquidation, their value will drop to $100 million, the presentation notes.

Most likely, the liquidation scenario is not yet considered as a real one, but is included in the presentation to show creditors the possible scale of losses if they refuse to restructure debts, two investment bankers believe.

Renaissance Group director Hans Jochum Horn declined to comment through his secretary, citing the confidentiality of the presentation.