Aeroflot sees no option for repayment of debt “Transaero” by conversion into shares

MOSCOW, October 22. Aeroflot, Russia’s largest air carrier, will not consider any variants of repayment of debts of “airlines” Aeroflot by entering into the capital of the troubled airline, said in an interview with the head of the Board of Directors of Aeroflot Kirill Androsov, clarified the position of “Aeroflot” on purchase of actions “Transaero”.

“Aeroflot” will consider proposals for conversion of debt before “Aeroflot” in the share capital of Transaero airlines, said Androsov.

Earlier on Wednesday Androsov in interview, answering the question whether “Aeroflot” the opportunity to become a co-shareholder, the “Transaero” in the acquisition of a controlling stake in carrier’s General Director of S7 airlines Vladislav Filev, head of the Board of Directors of Aeroflot said: “If the new owners turn to us with any proposal, we will consider it. While to us nobody addressed”.

As explained by Androsov, the Board of Directors will consider any proposals addressed to “Aeroflot”, it is a standard procedure of corporate governance, however, does not show the willingness to become a shareholder of “Transaero”. Thus, according to him, the option of receiving an “Aeroflot” shares “Transaero” for the debts eliminated.

At the beginning of October “Aeroflot” has refused to buy 75% of actions “Transaero” for a symbolic 1 ruble due to the fact that the owners of Transaero airlines broke a term of the offer.

General Director of S7 airlines Vladislav Filev on Tuesday evening, announced that it has acquired “at least 51% of actions “Transaero” Alexander Pleshakov, who is the largest shareholder of the airline.