"... 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 (one per tranche) 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.

As UNIAN reported earlier, 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.

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In case of consent, the owners of Eurobonds with maturity in 2015 will receive a remuneration of $5,000 per 1,000 of securities nominal value. In this case, the repayment of principal will be made in two stages: on May 20, 2015 - 10%, and on January 31, 2016 - 90%.

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.

As UNIAN reported earlier, 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 production of iron ore concentrate decreased by 6%.

In 2014, group’s net profit declined by 2.5 times compared to 2013 - from $392 million to $159 million.