DTEK Energy agrees to standstill with banks till Jan. 28

Ukraine’s leading utility holding DTEK Energy (DTEKUA) reported on its website on Sept. 22 it has signed a standstill agreement with its lending banks. The holding will pay a 0.25% consent fee to the banks, and additional 0.25% fee on Oct. 28 to extend the standstill until Jan. 28. The holding will pay 10% of accrued interest monthly during the period. It also reported that it “intends to offer equal standstill conditions to its lending banks and Eurobond holders”. It also intends to agree on long-term restructuring with all its creditors by the year’s end.

DTEK Energy’s total debt subject to restructuring is about USD 2.2 bln, out of which USD 1.3 bln are bank loans.

Alexander Paraschiy: The holding’s plan to reach a deal is in line with our vision that it won’t be able to complete restructuring negotiations by Oct. 28, when a standstill with Eurobond holders expires (refer to our Sept. 22 note on DTEK). Now we should expect an offer soon to extend the standstill for Eurobond holders by three months, with a 0.25% consent fee. We retain our neutral view on DTEK notes.