YUKOS Receives Notice of Potential Loan Default

YUKOS Oil Company reports that it had received a notice related to YUKOS' $1.6 billion pre-export facility secured term loan that it was considered by the lender that a Potential Event of Default has occurred.

The lender under the loan has approved that Yukos and associated companies continue their export trading activities related to the loan without restriction, but it may exercise its rights with respect to certain bank accounts over which security has been granted in its favor at its discretion in the future.

The Potential Event of Default notice relates primarily to the tax claim for RUB 99,375,538,234 filed against YUKOS dated 14 April 2004 and the order granted by the Moscow Arbitrazh Court dated 15 April 2004 prohibiting YUKOS from disposing of or encumbering its assets, not involved in the core business of the company.

YUKOS had received a similar notice earlier from the lenders under its $1 billion syndicated pre-export facility secured term loan. The $1.6 billion facility has virtually identical terms and conditions as the $1 billion facility.