Following the announcement, 2015 notes of Ukreximbank gained almost 6% on Wednesday and closed at 67% at the end of the week.

Ukreximbank

There were number of key development in the restructuring process of Ukreximbank, Ukranian 3rd largest bank.

First of all, during the 1st meeting with the creditors on April 13, the bank failed to get quorum to secure a 3-month maturity extension on $750m of bonds due April 27. The 2nd meeting with lower quorum requirements will take place on April 27, during which the company will need to get consent about short-term extension only from investors representing 1/3 of the bonds, down from 2/3 at the first vote. If the resolution will be reached, the interest due on the bonds will be released to the holders on April 27. However, in case if extension of the maturity fails, the bank will be in breach of its obligations and facing prospect of disorderly default in a matter of two weeks, which could in turn escalate to the sovereign scale, especially given that failure to reach new terms by Ukraine on the 29 bonds and enterprise loans it is restructuring would jeopardize the second part of the IMF’s $17.5bn aid package.

The second event took place on 15 of April, when the bank circulated a letter regarding restructuring conditions, indicating that negotiations with creditors will only seek maturity extension of up to 10 years and will not intend to offers any haircut or coupon decrease for its 2015 Eurobond. The bank may also offer the same maturity extension for all its Eurobond issues, including the $600m notes maturing in 2018, given that central bank of Ukraine has previously ordered it to take measures to change conditions of all its external obligations in line with the IMF program. Following the announcement, 2015 notes of Ukreximbank gained almost 6% on Wednesday and closed at 67% at the end of the week.