Dniprooblenergo restructures its overdue payables

According to Dniprooblenergo’s (DNON) press service, the company managed to restructure its USD 400 mln overdue debt to Energorynok, Ukraine’s wholesale electricity market operator. The company will repay USD 340 mln over the next eight years and other debt amounting to USD 55 mln over 13 years. Alexander Paraschiy: This is really positive and unexpected news: we saw a low chance that the company would restructure its considerable debt. Now that the company’s bankruptcy risk is eliminated, we now consider the stock among the most attractive Oblenergos again. Two other Oblenergos still have high debt: Donetskoblenergo (DOON) and Krymenergo (KREN); refer to our note yesterday on Oblenergos. The news increases the chances that these companies will also manage to resolve their issues with overdue payables and eliminate their risk of bankruptcy.