Trustee of Eurobonds PrivatBank ready to investigate the situation regarding the forced conversion of the securities

The Trustee (Trustee) for Eurobonds PrivatBank (Dnipro) maturing in 2018 Deutsche Trustee Company Limited has notified the holders of the securities of readiness to investigate the situation regarding the forced conversion of loan liabilities of the Bank into capital.

A notification published on the website of the Irish stock exchange on Thursday, January 12, reports «Interfax-Ukraine».

Deutsche Trustee Company Limited, in particular, reported that it did not have personal funds to conduct adequate investigation, however, willing to accept the relevant procedure from the holders of the securities.

In the first phase of the holders of notes must identify itself and inform the Trustee the amount of securities owned, after which Deutsche Trustee Company Limited will inform them about further procedures.

The notice also contained a letter that PrivatBank has notified the Issuer of the Eurobonds and UK SPV Credit Finance plc. and Deutsche Trustee Company Limited that the Bank became the property of the state without any obligations on the securities since they were decommissioned during the term of the interim administration.

As reported, in the framework of the nationalization of the PrivatBank’s obligation 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.

At the end of December 2016, the bondholders owning different securities totaling more than $ 120 million, United in the ad hoc Committee for the joint defense of their rights and interests. The Committee consist of five funds, including the British, American and Swiss.

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 (UK), 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 to PrivatBank as debt. Securities have limited recourse.

The paper also noted that in the case of recognition of the Bank insolvent, it came under the management of Fund of guaranteeing the deposits of individuals. the Fund appoints temporary administrator of the Bank who is authorized to take any action to restore the solvency of the Bank.

The bondholders 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 thereby hope to obtain as compensation for his investment the foreign assets of the Bank.

The Trustee is the Trustee that expresses the collective interests of the holders of notes at such events as the default, changing the terms of the securities, control over the transfer of interest payments, disclosure of information and other.

Trustee of Eurobonds PrivatBank ready to investigate the situation regarding the forced conversion of the securities 13.01.2017

Январь 13th, 2017 by
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