Creditors of Ukraine’s largest poultry company give it more time to pay interest

0

Creditors of Ukraine’s largest poultry maker, MHP SE, have agreed to give the organization an additional nine months to make interest payments on $1.4 billion in bonds. A larger portion of bondholders voted in favor of extending the grace period on coupon payments to 300 days, the company said in an explanation Wednesday. The company will not have the ability to take on more debt and will have restrictions on committing its cash during this time. Ukrainian businesses tried to set aside money after Russia invaded the country in February, disrupting their business.

“We’ve had tremendous support from all stakeholders,” Dr. John Rich, executive chairman of MHP, said in a phone interview with Bloomberg. “Now the main thing for MHP is to plant its crops. We will plant spring crops and harvest the winter crops we have in the ground.”

MHP skipped a coupon payment on March 19 as it sought to preserve liquidity ahead of a planting campaign. Kernel Holding SA, another Ukraine-based agricultural company, is in talks with its bank lenders to defer loan repayment until September.

MHP’s three dollar bonds, downgraded to default by S&P Global Ratings last week, traded at around 40 cents to the dollar on Wednesday.

As MHP prepares to start the sowing campaign in early April, it is also restarting exports, using trucks as the conflict with Russia has cut the company off from its usual shipping routes, management said in an interview. with Bloomberg News last week. The company had $228 million in cash as of March 21, management said.

Summary of news:

  • Creditors of Ukraine’s largest poultry company give it more time to pay interest
  • Check out all the news and articles from the latest business news updates.
Share.

Comments are closed.