Friday 18 September 2015

Ukraine Bond Deal at Risk Again as Rebel Investors Demand Change - Bloomberg Business

Ukraine Bond Deal at Risk Again as Rebel Investors Demand Change - Bloomberg Business:

"A group of investors in Ukraine’s shortest-dated bonds stepped up pressure on Franklin Templeton to adjust the terms of an $18 billion restructuring agreement they argue is biased against them, saying they have the power to block the deal.
Holders of the $500 million Eurobond due on Sept. 23 have a so-called blocking stake in the security, Shearman & Sterling LLP, the law firm representing them, said in an e-mailed statement on Thursday. That means they own the 25 percent needed to potentially thwart a vote on the agreement finalized last month with a committee of some of Ukraine’s biggest bondholders.
Holdouts may threaten a ratification process that’s behind schedule due to delayed sign-off on the deal by the eastern European nation’s parliament. The war-ravaged country needs to restructure its external debt to qualify for a $17.5 billion International Monetary Fund loan, which is already at risk because of Russia’s insistence on being repaid in full for a bond due in December."



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