Ukraine’s Naftogaz Agrees Restructuring Deal With Bondholders

Ukraine’s NJSC Naftogaz Ukrainy has agreed a debt restructuring plan with a group of key bondholders, after multiple previous attempts failed.

The state-run energy company offered to extend the maturity of its bonds due in 2022 and 2026, and to defer interest on that debt. It will now seek official consent from a large majority of bondholders to try to implement the deal by end-July. The latest proposal envisaged a restructuring fee as an extra sweetener for both notes plus additional covenants, including terms related to asset sales.

“This agreement is another sign of Naftogaz’s intention to find common ground ...