London court approves DTEK Energy debt restructuring

The High Court of Justice of England and Wales ruled
on April 16 to allow DTEK Energy (DTEKUA) to convene two inter-conditional
schemes of arrangement in order to restructure all its debt obligations, the
company reported the same day. The meetings of bank creditors and Eurobond
holders to approve the restructuring terms will be held on May 7, the company
announced. The creditors who sign the lock-up agreement and approve the debt
restructuring will be entitled to receive a restructuring fee in cash, equal to
2% of the par amount of new DTEK Energy bonds, the company recalled.

In February, DTEK Energy announced key debt restructuring parameters,
based on which most of the company’s existing debt will be exchanged into bonds
of DTEK Oil & Gas (USD 425 mln with a coupon rate of 6.75% and ultimate
maturity in end-2026) and new bonds of DTEK Energy (with a coupon rate of 5%-7%
and ultimate maturity in end-2027).

Alexander Paraschiy: We continue
to expect that the company’s restructuring will be successful. Meanwhile, we
note that this year seems to be better for DTEK Energy’s fundamentals as
average electricity prices for Ukrainian thermal power plants were about 10%
higher yoy in 1Q21. We, therefore, see a high chance for DTEK Energy to be able
to smoothly service the restructured debt.