Sberbank to extend NTS credit loan

2010-08-26

Sberbank has agreed to extend the repayment date on a RUB 1bn ($32.7m) loan owed by Novyye Torgovyye Sistemy (NTS), a Russian grocery retailer. The repayment date has been postponed for a further 5.5 years. The company is planning to use the borrowed funds to finance the opening of 25 Lidery Ekonomii stores, after having failed to open any last year. There are currently 21 Lidery Ekonomii stores, each of which cost approximately RUB 2.5-3m ($80,000-100,000) to open.
Sberbank is NTS’ second-largest creditor after Zenit bank, which is owed around RUB 3bn ($98m) by the retailer. The terms of the loan were recently extended, pushing the repayment date back to 2013.
NTS also owes money to VTB bank, however, the company could not agree an extension to the terms of the loan and in May 2010, VTB won a court case against NTS demanding RUB 223m ($7.3m) and the company’s retail property (1,710 m²), which was valued at RUB 140.9m ($4.6m) by the bank.
On 1 January 2009 NTS reported having debts amounting to RUB 7.47bn ($244m), including RUB 5bn ($163.3m) in loans.