Interpipe fails to make Eurobond coupon payment

Interpipe, the Ukrainian steel pipes and railcar wheel manufacturing group, did not make its USD 8.75 mln semiannual coupon payment on February 2, as scheduled, on its USD 200 mln in Eurobonds, according to Concorde Capital sources. The issue matures in August. Interpipe announced last month that it signed lock up and support agreements with 74% of Eurobond holders. The deal meant bondholders would not pursue actions that could lead to cross-default until February 2 or later. The contracts also obliged Interpipe to pay bondholders USD 2.5 for every USD 1,000 in principal and pushed back the stop date from February 2 to February 28. Fitch Ratings downgraded Interpipe from ‘CCC’ to ‘RD’ (Restricted Default) in December to reflect payment default on select Interpipe bank debt and its confirmation of cross-default on major bank debt and Eurobonds. Interpipe controls Nyzhnyodniprovsk Pipe (NITR UK), Novomoskovsk Pipe (NVTR UK) and Niko Tube.