Ukrainian companies restructure debt

Banks and companies in Ukraine continue to restructure their foreign debts offering their creditor higher dividends in return for longer maturity. Konstantin Zhevago's bank Finance and Credit decided to restructure 95% of its debt until 25th January 2014 increasing the coupon payment to 10,5% (instead of 10,375%) with twice a year payments. UR has mentioned that Zhevago's Ferrexpo was recently successful in attracting USD 230 m financing facility. Vlast Deneg Journal (50/2009) also mentions that Viktor Pinchuk's Interpripe Limisted started negotiations with its eurobond's holders on concluding contracts that will make them refuse any actions leading to cross-default.

The year of 2010 will become critical for lots of Ukrainian companies who just approached default in 2009. Looks like next year we will see much more corporate defaults in Ukraine. Ukraine's economy will stabilize, just as the IFIs tell us, but it is likely to be a stabilization at the bottom of a deep well. Thus, unable to generate profits to pay off their debts corporations and banks will hit tough times about the spring of 2010.

Therefore, those who look ahead desperately try to restructure their debts now.

UPDATE. On Dec 18 Fitsch downgraded Pinchuk's Interpipe Limited company from "CCC" to "RD" - restricted default rating.