Print
07.12.2016

NOTEHOLDERS APPROVE EXTRAORDINARY RESOLUTION IN RELATION TO THE U.S.$500 MILLION LOAN PARTICIPATION NOTES DUE 2021

Public Joint Stock Company “Ukrainian Railway” (the “Company”) is pleased to announce that holders of the U.S.$500,000,000 9.875 per cent. Loan Participation Notes due 2021 (the “2021 Notes”) issued by Shortline plc (the “Issuer”) approved the Extraordinary Resolution set out in the consent solicitation memorandum dated 22 November 2016 at the noteholders’ meeting that took place on 7 December 2016.

Holders of approximately 93.48 per cent. of the outstanding 2021 Notes submitted voting instructions for the noteholders’ meeting and approximately 99.96 per cent. of votes cast at the meeting were cast in favour of the proposed Extraordinary Resolution. The Extraordinary Resolution approved certain amendments to the loan agreement between the Company and the Issuer that will extend the time period during which the Company is obliged to complete restructuring of its local indebtedness to 31 December 2017 and carve-out certain Donetsk-related indebtedness from the scope of the cross-default provisions. Furthermore, pursuant to the terms of the Extraordinary Resolution, all defaults or events of default, which may have occurred as a result of the delay in completing the restructuring of the Company’s local indebtedness, will be waived.

Mr. Wojciech Balczun, Chief Executive Officer of the Company commented:

“We are grateful to noteholders for their overwhelming support in this operation. This first success is the starting point of the implementation of the Company’s new strategy aiming at increasing capital expenditures, restoring profitability and improving investors’ relations. The management board of the Company has also recently been revamped and its new members are fully committed to implement more transparent communication channels vis-a-vis all stakeholders.”

The implementation of the proposed amendments is subject to registration with the National Bank of Ukraine. The expected date for conclusion of this operation and payment of the announced consent fee will be announced in due course.

Lazard Frères acted as financial adviser and White & Case LLP and Asters acted as legal advisers to the Company.