International vertically integrated mining and steel group Metinvest, owned by Ukrainian billionaire Rinat Akhmetov, has defaulted on its debt obligations, and the company is now in talks with its creditors, according to a company press release.
“The Group announces that it is currently in a payment default situation and that it has launched three consent solicitations to its 2015, 2017 and 2018 bondholders. The purpose of these consent solicitations is to request a deferral of a 2015 bond principal repayment due on May 20, 2015 and waive certain existing and future events of default on the 2015, 2017 and 2018 bonds,” the press release reads.
“Discussions with PXF lenders are ongoing, including with a view to negotiating a standstill and waiver agreement, paving the way for a broader rescheduling of the group’s debts,” the press release goes on.
Metinvest proposed to holders of its bonds worth $113.7 million maturing in May 2015 to extend the deadline for the repayment to January 2016.
The company notes that last year it carried out repayments in amount of $1.525 billion of debt, but because of the war in the Donbas the company was unable to gain access to international capital and credit markets to refinance existing debt.
From mid-July 2014 Metinvest company, which is located in the east of Ukraine, has had to suspend its activities due to the conflict in the Donbas.
In 2014 Metinvest reduced production of steel products by 15% and steel by 26%, while output of iron ore concentrate decreased by 6%.
In 2014 group’s net profit declined 2.5 times compared to 2013, from $392 million to $159 million. (https://uatoday.tv/business/ukrainian-billionaire-akhmetov-s-metinvest-announces-default-420554.html/Ukrainian metal)