14:58 06.06.2017

Meeting of PrivatBank noteholders slated for June 21 due to lack of quorum

2 min read
Meeting of PrivatBank noteholders slated for June 21 due to lack of quorum

A meeting of holders of Kyiv-based PJSC PrivatBank's notes worth $175 million falling due on February 28, 2018, and notes worth $200 million falling due on January 23, 2018, has been rescheduled for June 21, U.K.-based note issuer UK SPV Credit Finance plc announced on the London Stock Exchange's website on June 6.

"The adjournment of the meeting held at 11 a.m. (London time) on 5 June 2017 due to lack of quorum an adjourned meeting of the Noteholders will be held at the offices of Clifford Chance LLP at 10 Upper Bank Street, London, E14 5JJ on 21 June 2017 at 11 a.m. (London time) for the purposes of considering and, if thought fit, passing the following resolution, which will be proposed as an Extraordinary Resolution in accordance with the provisions of the Trust Deed," the announcement said.

The agenda has not been changed: the dismissal of Deutsche Trustee Company Limited, which acted as the trustee on the securities, and the appointment of Madison Pacific Trust Limited as a new trustee, and other procedural matters.

As was reported earlier, as part of PrivatBank's nationalization, its obligations to a special purpose vehicle (SPV), the issuer of the notes, were subject to the bail-in procedure and were swapped for shares of an additional issue by the bank: $175 million at 10.875% with maturity on February 28, 2018; $200 million at 10.25% with maturity on January 23, 2018, of which $40 million was repaid in August 2016; and $220 million in at 11% subordinate debt bonds falling due in 2021.

The issuer of the bonds maturing in January and February 2018 was UK SPV Credit Finance plc. The notes falling due in 2021 were issued via ICBC Standard Bank Plc (the United Kingdom), however, during their restructuring, the debt was re-registered to UK SPV Credit Finance plc.

After PrivatBank's nationalization, the issuer company remained in its ownership.

Some holders of PrivatBank's notes went to the London Court of International Arbitration to challenge the forced swap of their notes for new bank shares.

According to Managing Partner of Suprema Lex Viktor Moroz, who is an adviser on the noteholders, the litigation is at the stage of agreeing the procedure of arbitration and selecting arbitrators.

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