Interpipe pipe and wheel company (Dnipro) at a meeting with the creditors in London on July 17 presented a preliminary plan for restructuring its liabilities worth $1.25 billion, Concorde Capital investment company has reported, with reference to a report by Reorg Research. The debtor, in particular, proposes to convert this debt into six-year eurobonds for $310 million with a coupon of 9.35% per annum, as well as two credit tranches of $45 million to Ukrainian banks and $45 million to international ones. The rest of the debt will be written off.
Eurobond holders and international banks will also receive securities, payments on which will be tied to Interpipe’s EBITDA. Ukrainian banks will not receive the relevant securities, at the same time they will have less debt forgiveness.
The terms of restructuring also imply imposing a $40 million fine on Interpipe if it allows non-payment under new eurobonds or loans to international banks.
Interpipe intends to pay creditors a substantial commission fee if the restructuring plan for liabilities is approved.
The adviser to the debtor is Stephenson Harwood (the UK), to the creditors Alvarez & Marsal and Allen & Overy (the UK).
The Interpipe international vertically integrated pipe and wheel company and the leading manufacturer of seamless pipe in Europe Vallourec (France) have announced its plans to start joint production of steel pipes for the European market. According to a press release of Interpipe issued on Wednesday, cooperation would not apply to oil and gas pipes. Mainly linear pipes, pipe for general use and products for engineering.
“Interpipe-made pipes will undergo finishing and quality control at the finish line, which will be built on the basis of Interpipe Niko Tube and will be managed by Vallourec. The line will be created within the joint venture of Interpipe and Vallourec,” press release.
According to the press release, the beginning of production is planned for the autumn of 2018. The pipes will be sold under the Vallourec brand in the European market.