DTEK-Energo is developing proposals for the introduction of a 'standstill' and debt restructuring.
The company is suspending payment of a coupon on bonds and interest on bank debt / Photo from UNIAN
Ukraine's largest private power producer DTEK is suspending interest payings on loan participation notes and bank loans and will ask creditors to restructure some of its debt due to the economic crisis caused by the coronavirus pandemic, it said on Saturday.
"In order to minimize the negative economic consequences, DTEK-Energo is taking emergency measures and suspending payment of a coupon on eurobonds and interest on bank debt," the company said in a statement, Reuters said.
"DTEK-Energo is developing proposals for the introduction of a 'standstill' and debt restructuring regarding the issue of eurobonds and asks the holders of eurobonds and bank debt to support the company in this difficult decision," it added.
The company, owned by the country's richest man, Rinat Akhmetov, did not clarify how much debt might be restructured.
The company was talking about loan participation notes maturing in 2024, a coupon for which is due on April 1.
As of March 29, Ukraine reported 418 cases of coronavirus, including 9 deaths, and the government last week declared an emergency across the whole country for the next 30 days.