REUTERS
Holders of $500 million in Ukraine’s Eurobonds maturing September 23, 2015, and EUR 600 million bonds maturing October 13, 2015, agree to Ukraine’s proposal on debt restructuring, according to Reuters.
The holders of Ukraine’s Eurobonds maturing in 2015 are going to vote in support of the proposal on debt restructuring, says a statement by Shearman & Sterling law firm, released on Friday, Reuters reports.
Earlier in September, investors argued the distribution wasn’t fair to the owners of notes due in 2015 since their investments are delayed for more years than everyone else.
In turn, Kyiv proposed to change older obligations to the most short-term new bonds Ukraine plans to issue in the process of restructuring. These proposals will be put to vote on October 14.
The statement by Shearman & Sterling law firm on behalf of its clients says the clients are fully satisfied with conditions that the payment will be delayed for no longer than four years, and they are ready to vote for the proposal.
As UNIAN reported earlier, on August 27, the Ukrainian government reached an agreement with the creditors' committee on restructuring part of the public debt totaling $18 billion. The restructuring involves a write-off of $3.6 billion, deferral of principal payments in the amount of $11.5 billion for four years, as well as setting a coupon rate under all bonds at 7.75% per annum.
On September 17, the Verkhovna Rada secured the constitutional majority to give the green light to a package of bills drafted by the Ukrainian government on the restructuring of Ukraine's sovereign debt.
On September 18, President of Ukraine Petro Poroshenko signed a package of government-proposed laws stipulating the procedure of restructuring Ukraine's sovereign debt. According to these laws, the Finance Ministry will start exchanging the restructured bonds for new ones, and will stop servicing the old bonds.