Odessaoblenergo Restructures Its Debts For 40 Years.

The Odessa Appeals Court ruled to allow Odessaoblenergo (ODEN: N/R) to re-structure almost USD 200 mln of debts to the Wholesale Electricity Market Operator (WEMO) over 40 years. WEMO has appealed. Concorde Capital: The court’s decision will help ODEN, as it would guarantee stable cash flows and protect it from bankruptcy. Moreover, as the decision is in line with the government’s ongoing project to solve problem debts in the energy sector, it is unlikely to be revised. The long period of ODEN’s debt restructuring significantly raises the company’s value before its possible acquisition. ODEN is among five Oblenergos controlled by the Russian group associated with Duma MP Alexander Babakov which the Czech energy holding CEZ is negotiating to purchase.