Metinvest plans to complete Eurobond restructuring by end-2016

2016/10/25 21:17:32

Analyst: “Metinvest’s delay postpones into 2017 the debt restructuring process of a related holding, DTEK (DTEKUA), which has made even less progress. Recall, the deadline initially set by DTEK to complete its restructuring talks was Oct. 28.”

 


KYIV, Oct 25, 2016 (UBO) - Ukraine’s leading metallurgical holding Metinvest (METINV) reported on Oct. 21 on “substantial progress” in relation to the negotiation of its restructuring proposal with its Eurobond holders, Concorde Capital informed clients in an online advisory.  In particular, Metinvest anticipates that the necessary documents to implement the restructuring will be published by the end of standstill on Nov. 30.

 

At the same time, the holding expects the restructuring will be fully completed “some time after Nov. 30, setting a new deadline of Dec. 31. This day is also set as a “further determination date” when the regular coupons payable under the standstill agreement are due.

 

Concorde analyst Alexander Paraschiy added: “The up-to one-month postponement of Metinvest's Eurobond restructuring deadline is not encouraging, although we believe it does not change its investment attractiveness by much. So far, we expect the holding will offer some better conditions as compared to what was preannounced in May 2016, and therefore we remain bullish on the holding’s bonds.

 

“Metinvest’s delay postpones into 2017 the debt restructuring process of a related holding, DTEK (DTEKUA), which has made even less progress. Recall, the deadline initially set by DTEK to complete its restructuring talks was Oct. 28.”

 

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