Ukrzaliznytsia asks bondholders to extend cross-default waiver

Ukrainian Railway (Ukrzaliznytsia, RAILUA) published on
Nov. 24 its announcement of a consent solicitation asking the holders of USD
500 mln in Eurobonds to grant more time for completing a local debt
restructuring. In particular, the company is seeking a cross-default waiver for
remaining unrestrctured local debt for an indefinite period and a waiver for
some other debt for an additional 1.5 years. Ukrzaliznytsia is offering a 0.4%
consent fee for the noteholders voting in favor of the offer by Dec. 6
deadline. The bondholder meeting to vote for the consent solicitation will take
place on Dec. 8, with a quorum of 2/3 of notes outstanding and approval rate of
3/4 of meeting participants.

Recall, Ukrzaliznytsia Eurobond holders approved in December 2016 the extension of a cross-default waiver for the
company’s debt inherited from Donetska Railway for an indefinite period, as
well as waived cross-default for some of its local debt till the end of 2017.