Mriya bankruptcy launched by Erste Bank, news site reports

Austrian Erste Bank has filed a claim in the Commercial Court of the High Court of Justice in the British Virgin Islands to recognize as bankrupt HF Assets Management Limited, the major shareholder in Mriya Agroholding (MRIYA, MAYA GF), the delo.uanews site reported on Nov. 13, citing information from the court. The claimant reportedly has asked the court to appoint liquidators of the company. With hearings on the case scheduled for Nov. 24, the interested lenders have to file their claims by Nov. 21, delo.uareported.

Roman Topolyuk: The clouds are gathering above Mriya’s default in August, which is likely to turn into a full-scale bankruptcy/liquidation procedure, despite the company having offered its lenders a restructuring program in late October.

The initiation of bankruptcy proceedings is bad news for the holders of Mriya’s unsecured 2016 and 2018 bonds, cumulatively worth USD 477 mln, which comprise less than half of total Mriya’s debt, and which are in a subordinate position to the company’s banking debt, which is most likely backed by some assets.