”Naftogaz” was once again unable to agree with the debt holders on the postponement of payments

The Ukrainian state company "Naftogaz" was once again unable to agree with the owners of its debts on the postponement of payments. The company wanted to pay its debts, but the Cabinet of Ministers demands to agree on restructuring.

Interfax writes about it.

According to a notice on the Irish Stock Exchange, the company was able to raise a quorum of debt holders for $335 million due in July 2022. But only 22% of them voted for the restructuring, while at least 75% is needed.

At the same time, there was no quorum for two other debt issues — with repayment in 2024 for €600 million and with repayment in 2026 for $500 million, so repeated meetings will be convened. Naftogaz itself says that at the meeting of debt holders for 2024, 74% were in favor of restructuring, and at the meeting of debt holders for 2026 — 43%.

The next meetings are scheduled for August 31.

• On July 26, Naftogaz announced that the government did not allow payments on Eurobonds and the company was in default. Before that, on July 21, the government obliged Naftogaz employees to take any action regarding Eurobonds only after separate agreement with the Cabinet of Ministers. In order to do this, Naftogaz applied to the government in advance for payments on Eurobonds — the company stated that it had funds in its accounts for this. However, "Naftogaz" stated that the government did not allow the company to fulfill its obligations to the owners of Eurobonds (it is about the principal amount and interest).
• At the same time, the Interfax agency, citing sources in the government, reported that on July 26, the Cabinet instructed Naftogaz to immediately start the second round of negotiations with investors regarding debt restructuring ($335 million principal loan and €45 million interest). The government explains its request by the fact that creditors have questions about why the state asks to postpone debt payments, while private investors in state-owned companies continue to receive such payments. Ukravtodor and Ukrenergo have already started relevant negotiations.
• Before that, Naftogaz had already applied for debt restructuring, but on July 25, the owners of Eurobonds refused to postpone payments for two years.