Ukraine’s Mriya sets restructuring principles, presents 10-year model

By Caroline Salls

Pittsburgh, Oct. 28 – Mriya Agro Holding Public Ltd. set key restructuring principles and presented a strategic financial model for the period of 2014 through 2024 to creditors at an Oct. 24 meeting, according to a notice to holders of the company’s 9.45% notes due 2018.

The strategic model is designed to assist with creditor negotiations.

Mriya announced on Oct. 14 that it received a notice of acceleration for its 9.45% notes due 2018 in connection with the company’s failure to repay debt.

In addition, some international lending banks have given notices of acceleration of loan facilities, some of which are guaranteed by Mriya.

The loan defaults stem from non-payment of sums due to the lenders.

According to an Oct. 24 news release, Mriya Group presented an operational model and restructuring security package to lenders and investors.

Mriya said it initiated dialogue in order to find agreements on debt restructuring and mutually find a framework to solve the existing situation that will take into account interests of all parties.

The proposed solution includes the company’s obligations on debt restructuring, establishing economically justified capital structure and increasing the quantity of debt instruments, as well as a scenario analysis where Mriya could not only repay interest and principal on debts, but, in the case of a price upside, share those profits with lenders.

Mriya Agro is an agricultural business based in the Ternopil region of Ukraine.

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