Ozon fails to meet its bond repurchase obligations

Ozon has failed to meet its obligations to repurchase bonds from Ozon holders, and this may

lead to default.The company said it is in talks with bondholders to find an acceptable solution. Ozon securities are traded on the Nasdaq exchange, and since February 28, trading in them has been suspended, and Russian subsidiaries of Ozon cannot send money to the Cypriot company Ozon Holdings, which is the issuer of bonds. These circumstances prevent the company from financing its payments. Ozon is in talks with $750 million in bondholders. While Ozon has not been hit by Western sanctions, the company said current capital flow regulations prevent the company from diverting funds from its Russian subsidiaries, which could pose a liquidity risk. The next important date for the company is June 14, a failure to meet obligations to bondholders by this point could lead to default by Ozon.