Ukrzaliznytsia Negotiates Eurobond Debt Restructuring

Negotiations that began in early April concluded without creditors reaching an agreement. Ukrzaliznytsia has proposed a restructuring composition for its $45 million Eurobonds that was rejected by investors. The proposed deal reportedly linked the restructuring to an increase in electricity tariffs. According to Bloomberg reports cited by the source, investors refused the terms because of this connection to tariff hikes. These options include a partial write-off of funds or linking repayment to cargo volume levels. The proposal involves deferring principal payments to later periods, potentially as far as 1933. The specific number of companies involved is unknown, but they represent a portion of the creditors. This information pertains to the ongoing discussions regarding debt restructuring. This occurs as Ukrzaliznytsia faces ongoing infrastructure and locomotive losses due to Russian aggression. Ukraine is seeking conditions for debt repayment that allow for financial breathing room rather than immediate full settlement. This approach aims to prevent the immediate cessation of operations. Ukrainian Railways, known as Ukrzaliznytsia, is conducting negotiations with creditors regarding the restructuring of its Eurobond debt.