Avangard anticipates technical cross-default on eurobonds
Avangard agricultural holding anticipates a technical decision of cross-default on its eurobonds due to the delay in payment by the parent structure – Ukrlandfarming.
"We will have cross-default, as Avangard acts as a guarantor on Ukrlandfarming's eurobonds. We hope that the cross-default will be settled in the near term. We think that it would be technical," Avangard CEO Iryna Marchenko said at a phone conference with investors on Wednesday.
She said that Avangard will not take any steps on the issue until the restructuring of Ukrlandfarming's eurobonds is finished.
"As far as I know, Ukrlandfarming issued a press release. This is the start of the restructuring process due to the delayed payment of the coupon. We will wait for the decision of the parent company Ukrlandfarming," she said.
Ukrlandfarming, Ukraine's largest agricultural holding in terms of land bank, on March 30 announced that the company 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.
KYIV. March 31 (Interfax-Ukraine) – Avangard agricultural holding anticipates a technical decision of cross-default on its eurobonds due to the delay in payment by the parent structure – Ukrlandfarming.
"We will have cross-default, as Avangard acts as a guarantor on Ukrlandfarming's eurobonds. We hope that the cross-default will be settled in the near term. We think that it would be technical," Avangard CEO Iryna Marchenko said at a phone conference with investors on Wednesday.
She said that Avangard will not take any steps on the issue until the restructuring of Ukrlandfarming's eurobonds is finished.
"As far as I know, Ukrlandfarming issued a press release. This is the start of the restructuring process due to the delayed payment of the coupon. We will wait for the decision of the parent company Ukrlandfarming," she said.
Ukrlandfarming, Ukraine's largest agricultural holding in terms of land bank, on March 30 announced that the company 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.
