The Industrial Union of Donbass (ISD) corporation doesn’t expect an aggressive recovery of its $60 million debt on behalf of the Cyprus-based Reachcom Limited, after the Ukrainian courts acknowledged the writ of the London International Arbitrary Court.
ISD legal department director Sergey Tkachenko says this is $47.9 million of the main debt and interest. He added that when the situation in the Lugansk region, as well as on the world metal markets is stabilized, ISD will return to negotiations of the possible ways to restructure its debts.
In 2005 ISD issued eurobonds valued at $150 million, with issuer being Russia-based Renaissance Capital, a part of which was Reachcom Limited. In 2010 ISD started experiencing financial problems. It then lost the case in the London International Arbitrary Court. But it was 3 years later, in August 2015, that the Lisichansk city court of Lugansk region stipulated the fulfillment of the London Arbitrary writ to recover the debt to Reachcom. (Ukrainian metal)
