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Sayenko Kharenko and Avellum Advise on Restructuring of Ukraine’s Sovereign Debt

Sayenko Kharenko and Avellum Advise on Restructuring of Ukraine’s Sovereign Debt

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Avellum, working with White & Case, has advised the Ministry of Finance of Ukraine on the restructuring of Ukraine’s sovereign debt. Sayenko Kharenko, working with Latham & Watkins, advised JP Morgan in its role as solicitation agent. Weil Gotshal & Manges advised some of the GDP-warrant and bondholders.

According to Sayenko Kharenko, the project included a solicitation for 13 series of Ukraine’s outstanding Eurobonds, amounting to approximately USD 19.5 billion of the sovereign debt, and a separate consent solicitation in relation to approximately USD 3 billion GDP-linked securities issued by Ukraine in 2015.

"The three-week negotiations with bondholders and GDP warrants holders resulted in the successful amendment of all of Ukraine’s sovereign international Eurobonds and GDP warrants, as well as state-guaranteed Eurobonds," the Ministry of Finance of Ukraine announced. "Holders of around 75% of the aggregate principal amount of Ukraine’s 13 Eurobond series outstanding voted in favor of amending the conditions of the Eurobonds (with at least two thirds of the aggregate principal amount of Eurobonds outstanding being required for successful amendment). Furthermore, each series of sovereign Eurobonds received more than 50% of votes in favor of amending the conditions, in line with the applicable consent requirements."

According to Sayenko Kharenko, "the successful liability management exercise was primarily focused on the extension of the notes’ maturity and introduction of coupon deferral mechanics, allowing Ukraine to postpone servicing its debt until 2024. The deal received unprecedented support from a group of creditors of Ukraine within the G7 and the Paris Club that committed to providing a coordinated suspension of debt service to Ukraine."

The Avellum team included Senior Partner Glib Bondar, Senior Associates Oleg Krainsky and Anastasiya Voronova, Associate Yaroslav Pavliuk, and Junior Associates Mariana Veremchuk and Oleksandra Mohylna.

The Sayenko Kharenko team was led by Partners Igor Lozenko and Anton Korobeynikov and included Associate Oles Trachuk and Junior Associate Yevgen Koval.

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AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

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