AVELLUM ADVISES BONDHOLDERS COMMITTEE ON METINVEST USD2.3 BILLION DEBT RESTRUCTURING

AVELLUM acted as a Ukrainian law counsel to the bondholder group composed of holders of guaranteed notes issued by Metinvest B.V., a holding company of a leading Ukrainian and international steel producer and exporter, in connection with the restructuring of USD2.3 billion of debt under its guaranteed notes and pre-export finance (PXF) loan facilities.

Metinvest Group is an international vertically integrated group of mining and steel companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets.

The restructuring of guaranteed notes and the PXF syndicated loan facilities was implemented through an English scheme of arrangement approved by the High Court of Justice of England and Wales. According to the terms of the restructuring, three series of guaranteed notes (due in 2016, 2017 and 2018) were cancelled, delisted and replaced with new listed senior secured notes in the total amount of approximately USD1.2 billion due in December 2021. Additionally, four PXF syndicated loan facilities were amended, restated and consolidated into a single loan facility in the amount of approximately USD1.1 billion due in June 2021.

The AVELLUM team included Partner Glib Bondar; Counsel Igor Lozenko; Senior Associate Taras Dmukhovskyy, and Associates, Taras Stadniichuk and Orest Franchuk.