As part of this proposal, the company is willing to partially pay $99.88 million along with accrued interest, increase the coupon rate from 6.2% to 9.625%, and provide an additional reward of 2% of the nominal value.
According to information published by the company on the Irish Stock Exchange, a special committee representing holders of 31% of the bonds, along with a separate holder owning an additional 18% of the bonds, have supported this initiative. In total, this represents agreement from 49% of bondholders.
“The NBU Resolution No. 18 (dated February 24, 2022) does not allow the borrower to repay the principal debt under the loan agreement using funds located in Ukraine. Although the borrower has continued to finance interest payments on the loan agreement using foreign currency held outside of Ukraine, such currency reserves are now depleted, and the borrower is not receiving foreign income and therefore does not have sufficient foreign reserves outside of Ukraine to repay the loan by the due date,” the company explains the need for a deferral.