Vinnytsyaoblenergo Restructures Debt to Energorynok over 10 Years
5 February 2008
Electricity distribution company Vinnytsyaoblenergo (VIEN: U/R) has restructured its USD 80 mln debt to wholesale electricity market operator Energorynok over 10 years (according to Energorynok, Vinnytsyaoblenergo owes it USD 76 mln). In 2008 the company will pay USD 1 mln in restructured debt. Alexander Paraschiy: We believe that the restructured repayment period is too small: in each year from 2009 to 2017 Vinnytsyaoblenergo will have to pay USD 8.3 mln in restructured debt. This amount is nearly equal to the company’s EBITDA for 2008. Unless the company is granted additional surcharges to its tariff to pay off the restructured debt, we do not believe it will be able to pay everything off over the 10-year period. For reference, Odesaoblenergo (ODEN: SELL) managed to restructure its USD 180 mln debt for 40 years in 2006.
