Ukrainian local court satisfies claims of Mriya bondholders

A local Ukrainian economic court in Ternopil ruled in favor of the bondholders of Ukrainian agricultural holding Mriya (MRIYA), the company announced on Dec. 16. They had asked the court to officially recognize the debt obligations of 68 Mriya subsidiaries, which acted as guarantors on the issued bonds. The claim amounts to USD 573 mln, which consists of the outstanding principal amount and accrued interest due since August 2014, when the company defaulted on the Eurobonds by not paying contractual interest.

Igor Zholonkivskyi: The court’s decision turned out to be technical in nature, as the bondholders’ claim was promptly satisfied. Mriya’s current management does not oppose the court’s ruling and recognizes the claims of bondholders.  We do not expect the court’s decision to have any major impact on the ongoing procedure of the Mriya’s USD 1.1 bln debt restructuring.