Holders of over half of Metinvest 2016-2018 eurobonds create committee

Holders of in excess of 50% of the outstanding principal amount across the 2016 Notes, 2017 Notes and 2018 Notes of Metinvest B.V. have formed an ad hoc committee, Metinvest said in a press release on September 25.

"The committee has appointed The Blackstone Group International Partners LLP as financial advisers and Linklaters LLP as legal advisers. The issuer welcomes this development and will engage with the committee and its advisers," reads the press release.

"In order to facilitate future communications and discussions among the noteholders, we invite noteholders to identify themselves to the issuer and to the committee’s financial and legal advisers," Metinvest said.

As reported, on June 26 this year Metinvest announced the agreement of the holders of Notes maturing in 2015 of their rollover from May 20, 2015 until January 31, 2016 in exchange for a cash payment of 25% of the nominal value of Notes in July 2015.

Holders of the 2015 Notes, 2017 Notes and 2018 Notes gave their consent to removing their rights to present claims due to certain events of default before January 31, 2016.

In the middle of August, Debtwire reported that the eurobond holders of Metinvest mining and metallurgical group are mulling the possibility of converting all its eurobond issues into one with an extended maturity. According to the report, Metinvest creditors' committee attracted Blackstone as a financial adviser and Linklaters for legal assistance in the forthcoming negotiations on restructuring eurobonds totaling $1.1 billion, and pre-export financing of $1.1 billion.

According to the source of Debtwire, the negotiations are likely to begin in September and the committee members are predominantly holders of Eurobonds worth $750 million maturing in 2018, while other bonds for $289 million maturing in 2017 and $85 million maturing in 2016 are also in circulation.