Naftogaz launches debt restructuring talks

Naftogaz of Ukraine issued a press release yesterday stating that it is conducting negotiations with bilateral creditors this week as part of its plan to restructure debts, including its Eurobonds due on September 30. The company said that due to the impending maturity of its Eurobonds, it intends to provide a proposal to bondholders as soon as practicable. Last week the company said it hired Credit Suisse to restructure its USD 1.1 bln in foreign debt, and as dealer-manager for the planned restructuring of its USD 500 mln Eurobonds. The Cabinet of Ministers, in a July 22 order, requested Naftogaz of Ukraine and the Finance Ministry restructure the debts of Naftogaz and lower its costs for servicing loans via refinancing.