Ukraine’s “Naftogaz” sweetens the offer of debt restructuring – #Ukraines #Naftogaz #sweetens #offer #debt #restructuring
LONDON, 10 March (Reuters) – of Ukraine state energy firm Naftogaz sweetened its debt restructuring offer to bondholders on Friday in a bid to break a months-long impasse over efforts to bail the company out of default.
The proposal’s key improvements include 5% of the already defaulted 2022 bond and a total of about 30 million dollars to pay the overdue “coupon” payment that will be added offer was to do.
It also proposed raising the coupon rate on that bond from 7.375% to 7.65% and paying holders of the 2026 bond a 0.5% “consent fee” if they agreed to split their debt payments as holders of the 2022 bond. offer did into two separate lumps.
“We are fair and decent offer we are trying to give,” Alexiy Chernyshov, the new CEO of Naftogaz, said at the conference and described it as a great effort for the state-owned company during a full-fledged war.
Naftogaz accounted for almost 17% of Kyiv’s budget revenues and employed more than 50,000 people before the Russian invasion more than a year ago.
Its underground warehouses 30 billion more than cubic meters gas that can keep them USA and makes it the third place in the world after Russia. It also has the second largest oil transportation pipeline network in Europe.
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He performed alongside Chernyshov in the challenge of Ukraine head of public debt management, Yuriy Butsa, said that Naftogaz will also stop part of the dividends it pays to the government.
The sweetened proposal would also include what’s called a “meeting clause,” meaning it could reassess the situation in mid-2024 and potentially advance some payments if the war-related situation improves dramatically.
It is not clear when bondholders will vote on the new proposal, but both Chernyshov and of Ukraine restructuring advisers Lazard ( LAZ.N ) said some calculations were based on a deal reached in mid-April.
Reporting by Marc Jones Editing by Jorgelina do Rosario Editing by Louise Heavens
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2023-03-10 21:06:19
Source – reuters
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