Nationalized «PrivatBank» (the Dnieper) denies the existence of obligations to holders of Eurobonds UK SPV Credit Finance plc. and the possibility of arrest of correspondent accounts of financial institutions, reports the press service of the Bank.
«In the balance sheet of the nationalized «PrivatBank» has no obligations to the holders of Eurobonds, and a decision on the procedure of nationalization of the Bank and its capitalization arrangements were made by the Deposit guarantee Fund of individuals (fgvfl) and the National Bank of Ukraine (NBU)», — are reported words of the first Deputy Chairman of «PrivatBank» Alexander Dubrovin.
In addition, he noticed that the essence of the claims of holders of Eurobonds UK SPV Credit Finance plc. Is to restore the rights of owners of such securities, and does not mean automatic imposition of restrictions on any accounts or assets of «PrivatBank».
«The practice of international law in relation to banks does not imply such form of security measure as the seizure of correspondent or any other accounts of the commercial Bank and especially its customers. A common practice of international courts is the obligation to Deposit in special account funds for future court decision on the point of action,» — said the first Deputy Chairman.
As reported, in the framework of the nationalization of «PrivatBank» of its obligations to a specially created British company (SPV) issuing of Eurobonds — have been subject to the procedure of bail-in and were exchanged for shares of the additional issue of the Bank.
Then the Fund of guaranteeing deposits of natural persons, which introduced a temporary administration in a financial institution, sold all of its shares to the state for 1 UAH. We are talking about three Eurobond issues: $ 175 million at a rate 10,875%, maturing February 28, 2018, $ 200 million at a rate of 10.25% maturing on 23 January 2018, of which $ 40 million was repaid in August 2016, and $ 220 million at a rate of 11% (bonds and subordinated debt), maturing in 2021.
The Issuer of Eurobonds maturing in January and February of 2018 was made in the UK a special company (special purpose vehicle, SPV) UK SPV Credit Finance plc. Eurobonds maturing in 2021 were issued through ICBC Standard Bank Plc (Velikobritanija), however, during restructuring this debt was re-issued on UK SPV Credit Finance plc.
The terms of issue of Eurobonds maturing in 2018 assuming raised through placement of securities means the Issuer will provide the «PrivatBank» as of the debt. Securities have limited recourse.
The paper also noted that in the case of recognition of the Bank insolvent, it goes under management of Fund of guaranteeing deposits of natural persons. The Fund appoints temporary administrator of the Bank authorized to take any action to restore the solvency of the Bank.
Holders of Eurobonds of PrivatBank, which owns different securities totaling more than $ 120 million, at the end of December 2016 has teamed up to a special Committee for joint protection of their rights and interests. The Committee is comprised of five funds, including the British, American and Swiss.
The holders intend to appeal to the London court of international arbitration (London Court of International Arbitration) compulsory exchange of their securities for shares of the additional issue of the Bank and thus expect to receive as compensation for his investment the foreign assets of the Bank.
The Trustee (Trustee) for the bonds «PrivatBank» maturing in 2018 Deutsche Trustee Company Limited 12 January 2017 published the notification about the lack of personal funds to investigate the forced conversion of obligations on the securities and the willingness to accept funds for the relevant procedures from their holders.
The notice also contained a letter that «PrivatBank» has informed the Issuer of the Eurobonds and UK SPV Credit Finance plc. and the Trustee Deutsche Trustee Company Limited that he went to the property of the state without any obligations on the securities since they were decommissioned during the term of the interim administration.
«PrivatBank» denies the fact that the obligations on Eurobonds 20.01.2017