You're reading: Ukrzaliznytsia eurobond holders approve refusal of cross default until late 2017

The holders of Ukrzaliznytsia eurobonds worth $500 million maturing in 2021 have agreed to extend their refusal of the cross default conditions on certain domestic debts, including that of Donetsk Railways, until late 2017, according to the issuer’s website.

The owners of 93.44 percent of the securities supported Ukrzaliznytsia’s proposal.

In future, changes in the conditions of the securities circulation must be approved by the National Bank of Ukraine (NBU). Ukrzaliznytsia expects to receive an appropriate approval somewhere on Dec. 16.

“We are grateful to the securities holders for their convincing support. This is the first successful step in implementation of the new strategy of the enterprise, involving an increase in capital expenditure, recovery of profitability and improvement of relations with investors,” reads a report citing PJSC Ukrzaliznytsia Chairman Wojciech Balczun.