But even the success of the raid does not preclude litigation over the validity of the Cabinet of proposals to restructure the debts of the largest state holding, which concentrated the main financial flows Ukrainian oil and gas industry.
Today it is time to maturity of Eurobonds, Naftogaz Ukraine, released on $ 500 million, with yield 8.125% in 2004 on September 14 this year state holding executives began negotiations with creditors to restructure foreign debt obligations. Yesterday, in the framework of these negotiations, acting Minister of Finance Igor Uman and the head of Naftogaz Oleg Dubina held regular consultations with holders of Eurobonds NAC. But the fate of the securities will be finalized on October 19. On this day in London scheduled meeting, during which their owners will vote on the proposal of Naftogaz to restructure the payments.
in the Cabinet, which under the control of Naftogaz confident in the successful outcome of negotiations with creditors. Today I, as Prime Minister was a restructuring of this debt in order to save Naftogaz and Ukraine, and I tell you - the default, we will never allow us restrukturiziruem this debt and show you how to properly manage the economy, and the more a country of such debts will not take - says Yulia Tymoshenko.
This is a total debt of NAC (the equivalent of $ 4.5 billion), which includes $ 1.6 billion foreign debt and $ 2.9 billion debt to the Ukrainian banks (of which $ 2.7 billion, according to Renaissance Capital accounted for Oschadbank).
As reported by EI, last week, Cabinet approved a program of restructuring the external debt of Naftogaz. It involves the exchange of outstanding bonds for new bonds due in 2014 and with higher yield. The company asked the owners of eurobonds worth $ 500 million to agree to exchange 100% of their securities for new bonds, also denominated in dollars, with a coupon of 9.5% and the advantage of reinforcement of the sovereign guarantee of the Ukrainian state with the term of payment for these liabilities in September 2014 g. , - said the report of Naftogaz. It also contains the objective of restructuring - in part to meet the challenges before Naftohaz problem and reduce the financial risks of the company.
If the government of Yulia Tymoshenko can not reach an understanding with Western creditors of Naftogaz, the state holding could be faced with the threat of defaulting on its foreign currency bonds. But experts say such a scenario is unlikely.
To block a restructuring of debt of Naftogaz Ukrainy, is required to collect 25% of the vote. Company Corlblow, Eastern European asset manager, a team of NAC Eurobond holders, which hold securities with a total nominal value of about $ 100 million, in our view, this group of investors should act very responsibly and, in particular, do not stop trying to attract new supporters in reaching the threshold, after which she will be able to defend their interests, - the report said investment company Renaissance Capital.
Moreover, its authors negatively about the credit quality of Naftogaz as an independent company, based on the financial performance of its activities, published in the financial statements for 2008, audited Ernst and Young, - the figures reflect well the extent of deterioration, NAC .
Traditionally, the company auditor's report is filled with numerous reservations about the continuity of operations, but its information content, unfortunately, is also traditionally low. In particular, we do not seem convincing virtually unchanged figures for accounts receivable write-off of bad debts and the establishment of appropriate reserves, even though that in the past year, the company regained the right to service industry - the most solvent consumers. It is a serious increase in working capital requirements undermined the company's ability to generate positive operating cash flow. Furthermore, it was a good illustration of the instability in a system where all finance stocks technologically necessary for the transit for Gazprom, has fallen on Naftogaz Ukraine, - analyst at Renaissance Capital.
Obviously, the negative trends in finotchetnosti Naftohaz not escaped the attention of the rating agency Fitch, which last week downgraded the long-term ratings of a default in foreign and local currency NAC. The downgrade reflects the recent statements of Naftogaz and the Government of Ukraine on their willingness to restructure the entire company's debt in foreign currency. At present, Fitch considers it unlikely that the Eurobond will be paid on time (September 30, 2009), and if payments are not made, the agency will carry out further declines in the issuer default rating to the level of RD (limited default), - noted in the announcement at Fitch.
However, according to experts, the default Naftogaz will not lead to serious consequences. The company has very few assets abroad, almost has no contractual relationship with the European oil and gas companies, and cash flows for the monthly payments to Gazprom is easy to protect from creditors. In particular, they may be effected through American or European banks, and through correspondent foreign currency account in Prominvestbank or any other Ukrainian bank, directly with Gazprombank. Thus, seizure of assets or cash flows of Naftogaz Ukraine will be a challenge.
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