Ukrlandfarming, Ukraine's largest agricultural holding in terms of land bank, intends to make a proposal for restructuring its eurobonds worth $500 million with a rate of 10.875% and maturing on March 26, 2018. The holding has refused coupon payment until that time.

According to a company report on the website of the Irish Stock Exchange, the date of coupon payment was due March 29. Payment, however, has not been made.

Ukrlandfarming has said it intends to initiate the restructuring of coupon payment.

Given the volume of issue and the rate, the matter concerns about $27.2 million.

Ukrlandfarming said that the coupon would be paid in accordance with the terms of the restructuring proposal. l

As reported, Avangard, Ukraine's largest egg producer, is controlled by Ukrlandfarming, whose shares are traded on the London Stock Exchange. Avangard in October 2015 completed the restructuring of eurobonds worth $200 million, deferring their repayment for three years. In addition, a greater part of interest income on eurobonds will be paid under an in-kind scheme. The first coupon was 40% paid in cash on October 29 ($4 million), while 25% of coupon will be paid in money in 2016, and 50% in 2017. The first coupon payment in 2018 will be 75% in cash. The last installment will be made fully in cash.

Interest rate remained unchanged at 10% per annum. Interest income is accrued and paid twice a year.