Ukrenergo Halts Bond Payments Amid Debt Restructuring

Ukraine's Ukrenergo has temporarily suspended bond payments as part of a debt restructuring with bondholders, ensuring operational and financial stability. The restructuring, approved in August, includes a 37% writedown for bondholders amid the ongoing conflict with Russia.

Ukraine's national power distribution company, Ukrenergo, announced on Wednesday that it is temporarily halting bond payments as part of a debt restructuring process. This decision aligns with a deal that Kyiv reached with its international bondholders earlier this year.

The move affects bond payments due by November 9, following a formal approval in August to restructure over $20 billion of debt. This marks the second such restructuring in the last decade, driven primarily by the ongoing Russian invasion that began over two years ago.

Under the agreement, bondholders agreed to a significant 37% reduction, known as a 'haircut', on the face value of their holdings. In exchange, they received a series of new bonds with revised terms.

(With inputs from agencies.)