You're reading: Metinvest won’t rule out writing off part of restructured debt

Metinvest, Ukraine's largest private mining and steel group, has refused to rule out writing off part of its debt which is to be restructured, Group CEO Yuriy Ryzhenkov has said during an exclusive meeting with the experts of Concorde Capital investment company (Kyiv).

“In addition to usual rollover, it is possible that we will discuss the possibility of writing off part of the group’s debt with the creditors. The basis for developing the specific terms of debt restructuring will be forecasts regarding the development of the market of iron ore and steel. According to the leading industry analysis agencies, the situation in the market will remain difficult over the next year and the first signs of recovery are possible no earlier than in 2017,” he said.

Ryzhenkov refrained from commenting any further on the transaction and, in particular, on how the future net operating cash flow will be distributed between the company’s creditors, saying that this would be the subject of further negotiations.

As reported, on June 26 this year Metinvest announced the agreement by the holders of eurobonds maturing in 2015 of their rollover from May 20, 2015 until Jan. 31, 2016 in exchange for a cash payment of 25 percent of the nominal value of bonds in July 2015.