The computer technology company Oracle has reportedly received U.S. regulators’ authorization to sidestep American sanctions and buy back its debt from Russian creditors.
According to a letter sent by the corporation to creditors, Oracle is prepared to buy debt claims against its Russian subsidiary (which was declared bankrupt in August 2023) for no more than 60 percent of their nominal value. Oracle’s creditors in Russia included Sberbank, Alfa-Bank, and MegaFon. According to RBC, the company’s total debt exceeded 1.4 billion rubles ($14.3 million). A condition of Oracle’s debt repurchase offer is that creditors must forgo any new claims against the company.
Oracle’s letter to creditors also states, “in consideration of the position of foreign consultants,” that the company currently considers a bankruptcy settlement agreement, among other options, to be “impracticable” for regulatory reasons.
Oracle suspended its operations in Russia in March 2022, following the full-scale invasion of Ukraine.
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