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.
