Dalsvyaz Reschedules EGM on Restructuring Company until June 10, 2009
OREANDA-NEWS On 23 October Dalsvyaz (RTS: ESPK, МICEX: DLSV, OTC USA: FEEOY, Frankfurt and Berlin stock exchanges: D7A) announced that its extraordinary general shareholders meeting has been postponed.
On October 10, 2008 the Board of Directors of Dalsvyaz adopted a decision to postpone the date of its extraordinary general shareholders meeting with the main issue on the agenda “On restructuring Dalsvyaz in the form of a spin-off” until June 10, 2009. Earlier the meeting was expected to be held on October 30, 2008.
The reason for rescheduling was the deterioration of the environment on financial markets, which has depressed share prices, pushed up interest rates and reduced the limits for borrowers. The company regards this situation as unfavorable for the refinancing of its obligations which are related to the restructuring. The company hopes that the situation on financial markets will stabilize by the middle of next year, so that the probability of risks associated with the restructuring will be reduced.
According to General Director of Dalsvyaz Anton Kolpakov, the decision adopted by the Board of Directors serves the interests of all the Company’s shareholders, since restructuring in the current financial conditions would have a negative impact on the company’s financial standing and also exert an adverse impact on the level of dividend payments.