At the end of July, due to the rejection of Eurobond holders, the company announced a technical default. Negotiations are ongoing.
Negotiations with creditors on debt restructuring are “very difficult and painful,” Naftogaz head Yuriy Vitrenko said in an interview with NV.
He recalled that the first offer was rejected by the Eurobond holders, they were offered new conditions.
“There is a difference, but technically not very big: for example, the capitalization of interest for two additional years of deferring payments. It is better for investors. On the other hand, if only in the first proposal the debt in the bonds ending in 2022 are postponed, then in the second – for all series of bonds, both with maturity in 2024 and with maturity in 2026,” said the head of the NAC.
He noted that in the case of Naftogaz, the situation is complicated by the fact that its securities are not guaranteed by the state.
“We are sometimes compared to Ukrenergo and Ukravtodor, where restructuring has also started, but there are significant differences. We do not have a sovereign guarantee, so the process is different in essence and in form. For Naftogaz, the restructuring process is very complicated and very painful,” said Vitrenko. .
The head of Naftogaz admitted that creditors must agree that they are losing funds.
“We’re just saying, look, you’re not getting the $390 million you want now. Instead, we’re restructuring the debt and the debt maturing in 2022 becomes debt maturing in 2024. The market value of a Naftogaz bond issue matures in 2024 is between 20 up to 30% of the face value. For restructuring, you will get less from 70 to 80% compared to what the company is obliged to pay you,” he explained.
Recall that on July 26, Naftogaz was unable to use Eurobonds, as their holders rejected the restructuring proposal. On August 3, Naftogaz sent investors a second request, which, according to media reports, was also rejected.
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Source: korrespondent
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