Metinvest bondholders approve extending standstill

Metinvest (METINV) announced on June 28 that its bondholders meeting, held the same day, approved the standstill extension (the scheme) of Metinvest’s debt until September 2016. The standstill is subject to another possible extension until November 2016 if needed, according to the previously published terms of the scheme. The decision was supported by 100% of the bondholders present, based on the number and value of the bonds.

After the standstill extension is approved by bondholders, an English court has to approve the scheme at a June 30 hearing in order for it to take effect.

Roman Topolyuk: The extension will give the company and its creditors time to finalize all the formalities related to restructuring Metinvest’s total debt, while the restructuring’s key conditions have been already been agreed upon with both its banking and bondholder coordinating committees.

Metinvest is on track to finalize the debt restructuring, as correction of steel prices has slowed down. Meanwhile, the restructuring’s flexible terms allow for any fluctuations the steel and iron ore markets may experience. Our view on Metinvest’s Eurobonds remains positive.