Privatbank Eurobond holders change their trustee

The holders of two Privatbank (PRBANK) senior Eurobonds held adjourned meetings on June 21 to change their trustee, Reorg Research reported the same day. Madison Pacific Trust was appointed to replace Deutsche Trustee, who was considered to be uncooperative with bondholders in their attempt to question a full dilution of their Eurobonds (bail-in) in the process of nationalizing Privatbank in late 2016.

Alexander Paraschiy: We can now expect more legal activity against the bail-in. Based on the interim success of the Surkis family in local courts, the position of the bail-in’s initiators is weak, even under Ukrainian legislation. So we see strong chances for the bondholders to suceed in international litigation against the Ukrainian government. The major factor of uncertainty is the timing of a ruling.