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April 29 (Reuters) - Russian internet giant Yandex on Friday said it had agreed with noteholders to extend the redemption rights period for convertible bonds due in 2025 by 30 days, gaining valuable time as it struggles to avoid repayment issues.
Yandex warned in early March that a trading suspension on its Nasdaq-listed shares could trigger a redemption right on a convertible bond that it does not have the resources to cover.
The current principal amount outstanding is $1.25 billion.
Yandex said it had set up an ad hoc committee of noteholders and is in ongoing discussions to try and reach a fair and sustainable solution for all parties involved.
"(Yandex) has agreed with the members of the ad hoc committee to amend the period during which noteholders may exercise their redemption right to the period from May 3, 2022 to June 7, 2022," the company said in a statement.
Unprecedented western sanctions against Moscow over its actions in Ukraine have thrown Russian markets into turmoil, while the freezing of central bank reserves have crimped Russia's ability to pay its sovereign debt.
But while Russia has only $40 billion in international bonds outstanding across 15 dollar or euro-denominated issues, its corporates have built up vastly more foreign debt. (Reporting by Reuters, Editing by Louise Heavens)