Naftogaz Presents ‘Working’ Debt Restructuring Plan to Creditors

Ukrainian state energy firm Naftogaz presented its working scenario to resolve the situation with the 2022 and 2026 Eurobonds at a conference all with investors on March 10, the company revealed Wednesday.

Naftogaz is currently working with its financial advisor Lazard Frères SAS to process feedback from Eurobond holders to prepare a formal restructuring proposal.

Should the proposal be put to a vote, the creditors holding 75 per cent of the Eurobonds would have to approve it, Reuters reported earlier.

“The strategic goal of Naftogaz is to restore the trust of the company's partners. We are currently waiting for feedback from Eurobond holders. I am confident we will soon find a solution to suit both our country and the bondholders," said Oleksiy Chernyshov, Chairman of the Board at Naftogaz of Ukraine.

The company says the debt restructuring working scenario takes into account the position of the Eurobond holders and the restrictions imposed by the Ukrainian government due to Russia’s full-scale invasion and resulting damage to Naftogaz infrastructure.

In July 2022, given the difficult economic situation in Ukraine, Naftogaz asked for a two-year deferral of payments on the Eurobonds. Later, it managed to reach an arrangement on the 2024 Eurobonds.

In early February, the firm held a series of consultations with its securities holders on the restructuring of its debt obligations under the 2022 and 2026 Eurobonds.