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KIEV Oct 9 Ukrainian state energy firm Naftogaz
said on Friday an overwhelmingly majority of investors in its
$500 million Eurobond had agreed to its restructuring plan and
talks with other foreign lenders were going well.
The company, whose finances have been wrecked in recent
years as it bought increasingly expensive Russian gas but is
forced to sell it at home at subsidised prices, wants to swap
all its foreign debt for a single $1.65 billion 5-year issue.
Holders of the bond, which has a coupon of 8.125 percent
against a proposed coupon of 9.5 percent on the new debt, voted
on Thursday on Naftogaz's proposal.
"The votes "for" together counted for over 92 percent of the
existing paper that was traded," Naftogaz said in a statement.
"Naftogaz notes also progress in talks with investors in
bilateral credit. The company is happy with the constructive
character of the talks," it said.
Its other lenders are Credit Suisse CSGN.VX, with a loan
of about $550 million, Deutsche Bank (DBKGn.DE) with about $395
million and Depha with about $220 million.
On Thursday, the International Swaps and Derivatives
Association ruled that Naftogaz's failure to repay the Eurobond
by a Sept. 30 maturity was a "credit event".
Analysts said that ruling would enable those who insured
themselves against default using credit default swaps to demand
a pay out.
(Reporting by Sabina Zawadzki; Editing by Mike Peacock)