OREANDA-NEWS. November 30, 2007. At the meeting of credit linked notes (CLN) holders of OJSC SUEK that took place on November 22, 2007, over 84% of CLN holders gave their votes for the company's reorganization, the conpany's press service reported. 

Meeting of SUEK shareholders that was held on September 11, 2007, resulted in the decision taken for reorganization of the company in the form of detachment of non-core companies that do not have strategic meaning for SUEK business. According to an agreement with CLN holders, OJSC SUEK addressed them on October 22, 2007 asking to vote for decision either on reorganization or on selling of the Company's CLNs.

CLNs were redeemed at US$ 1.010 per US$ 1.000 of denomination value till November 5, 2007 and at US$ 1.005 per US$ 1.000 of denomination value after that date. In total, holders of about 59% of emission volume applied for selling of CLN. And 25% of CLN holders preferred not to sell CLNs but have approved of the Company's restructuring. Redemption procedures were completed on November 23, 2007.

Citigroup Global Markets Limited played a role of the sole dealer-manager during procedure of CLN holders' approval of reorganization and further redemption of CLNs claimed for sale.

For reference: OJSC SUEK placed CLNs for US$ 175 mln. in October 2006. Volume of subscription for SUEK CLNs was 3.5 times higher than initial expectations. CLNs were placed at down limit of probable profit level of 8.625% per annum.