Oschadbank (Kyiv) has welcomed the statement of Black River Asset Management LLC, Franklin Templeton Investment Management, Oaktree Capital Management, L.P., Pioneer Investment Management Limited, Spinnaker Capital Limited and VR Capital Group Ltd. on the formation of an ad hoc committee of creditors-holders of the bank's 2016 and 2018 notes and the subordinated loan raised by the bank, to be repaid in 2017.

"We're looking forward the fruitful discussions with members of the ad hoc committee and hope that their support would help the bank to receive consent of the holders to restructure debt tools on the conditions that are mutually beneficial for the bank and their creditors," Oschadbank said in a report, citing Board Chairman Andriy Pyshny.

According to the report, the committee members told Oschadbank that they are waiting for discussion in the coming weeks.

The bank said that this concerns eurobonds worth $700 million due on March 10, 2016 with coupon of 8.25% per annum, eurobonds worth $500 million due on March 20, 2018 with coupon of 8.875% per annum and a loan of $100 million raised via RBS as an agent that is to be repaid on January 19, 2017 and the credit rate is Libor+5%. The coupon on eurobonds is paid once in six months.

According to a bank report for 2014, in July and October 2015 the bank is to pay on its liabilities to foreign financial institutions UAH 401.03 million and UAH 287.53 million respectively (at the exchange rate of around UAH 16/$1 as of late 2014) denominated in the foreign currency with the rate of 9.5-9.52% per annum.

As of late 2014, the bank owed UAH 3.974 billion to the European Investment Bank under currency-pegged loans, the term of payment on the liabilities is from August 2017 to December 2024 at rate of 4.26% in euros and 5.87% in the U.S. dollars per annum.

According to information received by Interfax-Ukraine, a first meeting of the ad hoc committee of creditors was held on May 22.