DTEK postpones payment of coupon on 2018 eurobonds until they are restructured
DTEK, the largest Ukrainian private vertically integrated group, plans in the near future to announce a proposal for restructuring eurobonds worth $750 million with a rate of 7.875% and maturing on April 4, 2018 and eurobonds for $160 million with a rate of 10.375% and maturing on April 28, 2018 and refused coupon payment on the latter until that time.
According to a report by the bond issuer, DTEK Finance PLC, on the website of the London Stock Exchange, the date of coupon payment was March 29, however payment has not been made.
Given the volume of issue and the rate, the matter concerns about $8.3 million.
DTEK notes that the coupon will be paid in accordance with the terms of the restructuring proposal.
As reported, DTEK at the beginning of December 2015 told the holders of its eurobonds that it plans to offer them to restructure these bonds in the first quarter of 2016. To simplify the process of restructuring, the group encouraged the holders to hold joint consultations to form a creditors' committee, which would appoint a financial advisor and, if necessary, come into contact with the financial advisor to DTEK - Rothschild.