Mriya gets USD 25 mln for funding its working capital

Agriculture holding Mriya (MRIYA, MAYA GF), which defaulted on its debt in August 2014, has secured a six-month, USD 25 mln loan facility from creditors for working capital purposes, the company reported on June 11. The loan will enable the company to pursue its autumn harvesting and sowing campaigns.

In addition, Mriya said it’s still drafting its restructuring plan for creditors and will offer it for their consideration by end June or early July. Its most recent projections, dated mid-May, foresee a cultivated land bank of 178,000 ha as of 2016, as well as EBITDA of USD 88 mln and USD 57 mln in free cash flow as of 2018.

Roman Topolyuk: Securing working capital financing enhances the company’s chances of operating as a going concern. Yet what will be offered to creditors is still unclear: the company could require heavy haircuts on its debt of USD 1.2 bln to be able to operate in a sustainable way, with its currently projected financials. A lot will depend on whether its creditors will be able to get additional assets from shareholders, as the process is time-consuming and complicated.