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Weil Advises on Ukraine’s USD 18 Billion Simultaneous Exchange Offers


Weil Gotshal continues to advise the Ad Hoc Creditors’ Committee (AHC), consisting of Franklin Advisers, Inc., BTG Pactual Europe LLP, TCW Investment Management Company, and T. Rowe Price Associates, Inc., in the restructuring of Ukraine’s sovereign debt. According to Weil, “the restructuring plays a critical role in securing Ukraine’s ongoing stability and economic recovery.”

On September 22, Ukraine successfully launched exchange offers in relation to 14 sovereign and sovereign-guaranteed Eurobonds with outstanding principal amounts of approximately USD 18 billion. This followed less than one month after Ukraine and the AHC agreed to Indicative Heads of Terms (IHT), following months of intense negotiations.  

Creditor meetings in relation to the 14 Eurobonds were held on October 14. In addition to new notes, creditors will receive a value recovery instrument in the form of a GDP growth warrant which was carefully structured to avoid certain flaws which had become synonymous with these types of instruments. It incorporates distinct mechanisms for value preservation and investor protection.  

In February 2015, Ukraine formally requested further funding from the International Monetary Fund and cancellation of its existing funding arrangements. In March 2015, the IMF announced the approval of a four year Extended Fund Facility for Ukraine. As a condition of that loan, Ukraine was required to procure additional savings through the restructuring of its sovereign and quasi-sovereign debt held by the private sector. 

The August 2015 agreement of IHT was achieved after numerous meetings with Ukrainian officials, the IMF, and U.S. Treasury officials. According to Weil, “the agreement is of significant political importance and has high political visibility in the European Union and United States.  

The Weil team advising the AHC is led by Restructuring Partners Andrew Wilkinson and Alex Wood with Lead Associates Kirsten Erichsen and Robert Peel — all in London — and a team of lawyers across the firm's London and New York offices.  

Editorial Note: Ukraine is being advised by White & Case on the restructuring. The firm’s team is led by Partners Ian Clark, Michael Doran and Francis Fitzherbert-Brockholes, and includes Partners Charles Balmain, John Higham, Prabhu Narasimhan, Peita Menon, and Kevin Ng.  Key Associates working on the matter included Michael Bark-Jones, Graeme Dickson, Mariya Azbel, Ronan O’Reilly, James Clark, Martin Mojzis, and Matthew Chalk.