Luhansk Energy Union Signs Debt Restructuring Agreement With Energorynok

The electricity distribution monopoly in Luhansk Region, the Luhansk Energy Union, has restructured its debt to the wholesale market operator, Energorynok, for 13 years and two months. The total debt of the company to Energorynok as of November 1 was USD 119.5 mln. Alexander Paraschiy: As protection of energy companies from bankruptcy stipulated by law will expire in January 1, 2008, all Oblenergos are trying to restructure their debts to Energorynok. At the moment, only several private companies have succeeded, while state-controlled Oblenergos seem to believe that state-controlled Energorynok will not start bankruptcy procedures against them. Nevertheless, we expect news about debt restructuring at state Oblenergos in the next couple of months.