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Avellum Partners Advises on Ukraine’s USD 15 Billion Sovereign Debt Restructuring

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Avellum Partners acted as Ukrainian counsel for the Ministry of Finance of Ukraine on the restructuring of thirteen sovereign and sovereign-guaranteed Eurobonds with an outstanding principal of approximately USD 15 billion.

According to the firm, "Settlement of the exchange offer involved the restructuring of approximately USD 15 billion of Ukraine’s external debt, achieves a 20% debt reduction for Ukraine (approximately USD 3 billion) and allowed Ukraine to avoid paying any of the previously scheduled USD 8.5 billion of principal falling due under such bonds through the end of 2018. This successful debt operation is a key part of the implementation of Ukraine’s IMF-supported EFF Program approved in March 2015 and represents the outcome of seven months of intensive work of all Ukrainian authorities, coordinated by the Ministry of Finance, to convince Ukraine's bondholders of the necessity of a debt restructuring.”

Glib Bondar, Head of the Finance and Restructuring Practice of Avellum Partners, who led the firm’s team on the matter, commented: “We have the honor to work on this remarkable and ground-breaking transaction with many legal challenges which had to be resolved in the middle of international an domestic political turbulences. We believe that this restructuring will become a cornerstone for Ukraine’s future financial stability and economic recovery.”  

In addition to Bondar, the team consisted of Lead Associates Artem Shyrkozhukhov and Taras Dmukhovskyy, with tax support from Associate Vadim Medvedev, and assistance from lawyers Taras Stadniichuk, Anastasiya Voronova, Pavlo Shevchenko, and Orest Franchuk.

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