Brunswick Rail Seeks Bank Waiver After Crimea Loan Breach
This article is for subscribers only.
Brunswick Rail said it’s seeking to persuade international lenders to waive their rights to demand immediate repayment after the company breached terms of a credit facility because railcars that are used as collateral were operated by clients in Crimea.
Without a waiver on the 8 billion-ruble ($128 million) loan arranged by Citigroup Inc., ING Groep NV, Raiffeisen Bank International AG and Unicredit SpA, Brunswick may also default on $600 million of bonds, according to Sergey Goncharov, an analyst at Sberbank CIB in Moscow. Lenders granted a waiver through Oct. 30 after the company breached other covenants last month.