Russian bondholders look to block Naftogaz restructuring

Cordblow, a Belize-registered holding company for Russian interests, announced yesterday that it is forming a bondholders’ group to block any offer by Naftogaz to restructure its USD 500 mln Eurobonds that are due to mature next month, Reuters reported. The Ukrainian government said last month that it would seek to restructure the issue before it matures. Cordblow’s legal advisor said that bondholders representing about 20% of the issue have expressed their support for the initiative to block restructuring. Andriy Gerus: We see a high probability that the proposed restructuring will be blocked by Naftogaz bondholders.