Holders of Eurobonds of PrivatBank (Kiev, Ukraine) appealed to the London court of international arbitration (London Court of International Arbitration) compulsory exchange of their securities for shares of the additional issue of the Bank, informed the Agency “Interfax-Ukraine” managing partner of the bar Association Suprema Lex Victor frost, who is an Advisor to holders of securities.
“On behalf of individual bondholders to date failed to initiate court proceedings concerning violation of their rights in the procedure of bail-in Eurobonds of PrivatBank in the international arbitration Institute. Court proceedings are pending arbitration and selection of arbitrators”, – he said.
V . Moroz also said that the intention of PrivatBank to change the Trustee (principal securities) due to the presence between the structures of the agreement under which the Trustee has limited options for appeal of any action PrivatBank Eurobond, which virtually paralyzed the ability to protect holders of Eurobonds, as well as the presence of a conflict of interest between the Trustee and the German National Bank of Ukraine.
According to V. Frost replacement Trustee will allow the formed today a group of bondholders to more effectively implement collective judicial protection.
As reported, the UK SPV Credit Finance plc, the Issuer of Eurobonds of PrivatBank for $175 million maturing on 28 February 2018 and $200 million maturing on 23 January 2018, initiated the convening of the June 5 meeting of holders of securities.
The meeting agenda included the issue of resignation of Trustee (principal securities) Deutsche Trustee Company Limited, the appointment of a new Trustee Madison Pacific Trust Limited, and other procedural matters.
Earlier it was reported that in the framework of the nationalization of the PrivatBank’s obligation to a specially created British company (SPV) issuing of Eurobonds – have been subject to the procedure of bail-in and were exchanged for shares of the additional issue of the Bank.
Then the Fund of guaranteeing deposits of individuals, which introduced a temporary administration in a financial institution, sold all of its shares to the state for 1 UAH. We are talking about three issues of Eurobonds: at $175 million at a rate 10,875%, maturing February 28, 2018, $200 million at a rate of 10.25% maturing on 23 January 2018, of which $40 million was repaid in August 2016 and $220 million at a rate of 11% (bonds and subordinated debt), maturing in 2021.
The Issuer of Eurobonds maturing in January and February of 2018 was made in the UK a special company (special purpose vehicle, SPV) UK SPV Credit Finance plc. Eurobonds maturing in 2021 were issued through ICBC Standard Bank Plc (Velikobritanija), however, during restructuring this debt was re-issued on UK SPV Credit Finance plc.
After the nationalization of PrivatBank company-Issuer of securities left in his possession.
The terms of issue of Eurobonds maturing in 2018 suggest that in the case of recognition of the Bank insolvent, it goes under the control of DGF. The Fund appoints temporary administrator of the Bank authorized to take any action to restore the solvency of the Bank.
Holders of Eurobonds of PrivatBank, owning different securities totaling more than $120 million, at the end of December 2016 has teamed up to a special Committee for joint protection of their rights and interests. The Committee is comprised of five funds, including the British, American and Swiss.