The media found out who is blocking the restructuring of Naftogaz's debts

The media found out who is blocking the restructuring of Naftogaz’s debts

London-based hedge fund VR Capital is blocking attempts by Naftogaz of Ukraine to restructure its debt. Let us remind you that Naftogaz wants to postpone payments for two years.

This is reported by the publication Financial Times with references to sources.

In July, Naftogaz was instructed by the government to carry out restructuring in order to save funds for importing natural gas and preparing for the heating season.

However, holders of bonds maturing in 2022 and 2026 rejected the company’s offers, leading to Naftogaz’s default. Investors in the 2024 bond, on the other hand, adopted a plan that allows for the postponement of 600 million euros of principal payments and 90 million euros of interest.

The VR hedge fund, led by Richard Deitz, is a large bondholder and played a leading role in blocking the company’s plans, according to the publication’s sources.

“Bondholders, which include both hedge funds and traditional asset managers, argue that Naftogaz can easily repay its bonds and that the decision to defer payments is dictated by political considerations. There’s a lot of frustration that the company hasn’t made payments.”– writes the newspaper with reference to the source.

VR declined to comment

It will be recalled that in July “Naftogaz” committed a technical default on Eurobonds – the company refused a two-year postponement of interest payments and repayment of Eurobonds.

The deadline for Naftogaz payments to owners of Eurobonds expired on July 26. On the same day, it became known that the Cabinet of Ministers did not allow the company to repay the debt, instructing the management to immediately start the second round of negotiations on debt restructuring.

Fuente: The media found out who is blocking the restructuring of Naftogaz’s debts

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