“Ukrzaliznytsya” for money for debt repayment

In “Ukrzaliznytsia” emphasize the existence of the risk of timely receipt of the necessary refinancing.

JSC “Ukrzaliznytsya” considers the priority of refinancing the current debt on the Eurobond issue of the new series of Eurobonds in the second and third quarter of 2019.

This was reported in the financial report of the company for the year 2018.

In the us expect that the effect of deregulation of the wagon component and higher prices for cargo transportation may be insufficient to make payments on long-term debt in 2019 (300 million dollars).

“Management staff continues to develop options to refinance the current portion of such debt. The priority is obtaining the necessary permits to place a new Eurobond issue in the second and third quarter of 2019. Also carried out work on attraction of borrowings from alternative commercial sources”, – stated in financial reports.

In addition, the management staff is considering the possibility of raising funds from state-owned banks and state support mechanisms in case of impossibility of timely raising funds from the international capital market.

At the same time “Ukrzaliznytsia” emphasize the existence of the risk of timely receipt of the required refinancing, given the likely difficulties in obtaining the relevant approvals from a number of authorities.

“In that case management staff are available as a last resort to initiate negotiations with creditors on debt restructuring”, – declare in “Ukrzaliznytsya”, referring to the fact that I will be able to agree on acceptable terms of debt restructuring.

However, as noted in the company, restructuring of current debt can be considered an event of default (a default) under other credit agreements, with the result that some creditors may arise the rights to demand early repayment in relation to the greater part of long-term loans.

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