The state oil and gas company Naftogaz of Ukraine is preparing a new plan for debt restructuring, being within days of default. Bloomberg writes about this, citing a company message.
The grace period for repayment of the company's bonds expires on July 26, the company did not provide details of the new plan, confirming the fact of negotiations with the Ukrainian government on making payments on securities. The state-owned company has already twice applied to the Cabinet of Ministers with a request to transfer the amount necessary for payments on bonds to its account. The first request was sent on July 22, the second on July 23, in the first case, the company was denied funds, the agency notes.
On Friday, July 22, the government allowed Naftogaz to refuse to pay paperwork and focus on paying for gas and taking it to storage in order to go through the heating period as painlessly as possible. At the same time, the government of Ukraine itself is in similar difficult financial conditions: earlier, the authorities asked their international creditors for a deferral of bond payments, as well as easing conditions.
Most Western creditors made concessions to Ukraine, but there is still no decision on the state-owned company's securities. Naftogaz had previously asked for a $1.5 billion deferral of its obligations for two years. It was about the issues of 2019, the first part (for $335 million at 7.375%) was to be redeemed on July 18, 2022. Two more issues (for €600 million at 7.125% and $500 million with a yield of 7.625%) were to be redeemed in 5 and 7 years respectively.