PrivatBank postpones 2015 bondholders' meeting until Aug 27 due to lack of quorum

PrivatBank (Dnipropetrovsk) has postponed a meeting of the holders of eurobonds worth $200 million maturing on September 23, 2015 until August 27 due to a lack of quorum at a meeting held on August 13, according to a bank report on the website of the London Stock Exchange.

According to the issuer, as a result of a meeting held in London the proposal of restructuring announced in the notice of meeting has not been satisfied.

As reported, on August 6 PrivatBank appealed to investors with an improved proposal for restructuring 2015 eurobonds worth $200 million.

According to the report, if the bondholders at a meeting on August 13 approve postponing the repayment of eurobonds worth $200 million from September 23 to December 1, 2015, the creditors will be offered the following terms of debt restructuring: 30% ($60 million) of the principal amount of the bonds will be paid on September 23, 2017, 17.5% ($35 million) then on October 23, 2017, November 23, 2017, December 23, 2017, and January 23, 2018.

In addition, PrivatBank reported an increase in the interest rate on the bonds to 10.25% from 10% in case of restructuring.

As one of the elements of the transaction, the holders who confirmed their agreement to extend the maturity are to be paid $20 for every $1,000 of the nominal value of eurobonds, which will have their conditions of payment changed.