Ukraine's Sadovaya Group restructuring EBRD loan
KYIV. April 16 (Interfax) - Sadovaya Group, a major private thermal coal producer in Ukraine, has secured an agreement with the European Bank for Reconstruction and Development to restructure a loan that was raised by its subsidiary PC Interdon LLC at the end of 2011.
The outstanding debt on the loan was $18 million at the end of September 2013.
The agreement was signed on April 10, and a shareholder agreement was also signed, the company said in an exchange filing.
Sadovaya Group, Interdon and the EBRD also decided to draw up a two-year restructuring plan for the Vakhrushevsky module enrichment facility owned by Interdon in order to improve its operating performance and efficiency.
Other details of the agreements with the EBRD were not disclosed.
Interdon and the EBRD signed the loan agreement for $36 million on December 30, 2011. Interdon defaulted on interest and commission payments on the loan in September 2013. The interest rate on the loan is the monthly LIBOR+6.5%, and the collateral is a 17.5% stake in Sadovaya Group.
Sadovaya Group, founded in 1995, carried out an IPO in December 2010, raising the equivalent of $31.9 million with the placement of 25% of shares on the Warsaw Stock Exchange.
Prior to the IPO, all shares in the company were owned by Cyprus-based Connektico Ventures Limited, which in turn is owned by Alexander Tolstoukhov with 51% and Sergei Stetsurin with 49%.
Due to the slump on the Ukrainian coal market, the company's Sadovaya and Rassvet-1 mines have been idle since 2012. Sadovaya Group posted a net loss of $26.2 million in the first nine months of 2013, as net income tumbled more than 95% to $1.32 million.
The company reported in its statement for the nine months that it also has overdue payments on interest to OTP Bank and Bank Credit Dnepr (Dnipropetrovsk) due on loans extended in 2011 in the amount of $21.29 million (LIBOR+8.5%) and UAH0.28 million (16% annually).
The company is selling off assets that are not used in operations, such as transport, in order to pay salaries and keep mines in operating condition.
The official exchange rate for April 15 was UAH12.385561/$1.
