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 major pipe enterprises of Ukraine in January-May 2018 boosted production of pipes by 10% compared to the same period last year, to 448,000 tonnes, including in May they manufactured 91,000 tonnes. The Ukrtruboprom association told Interfax-Ukraine that enterprises, which are members of the association, boosted production by 23.5% year-over-year, to 336,000 tonnes, including 72,000 tonnes made in May.
Khartsyzsk Pipe Plant (Donetsk region), located in the government uncontrolled zone, remained idle in January-May 2018, while it made 3,400 tonnes of pipes in January-May 2017.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 28.4% compared to January-May 2017, to 124,000 tonnes (26,400 tonnes in May 2018 alone), Interpipe Novomoskovsk Pipe Plant increased output by 16.7%, to 44,100 tonnes (10,400 tonnes in May), while Interpipe Niko Tube raised production by 30%, to 147,400 tonnes (30,900 tonnes in May).
Dnipropetrovsk Pipe decreased pipe production by 7.9%, to 9,300 tonnes, making 2,100 tonnes in May. Production at Centravis grew by 10.5%, being 8,400 tonnes of stainless pipes (1,800 tonnes in May).
Pipe production at Trubostal rose by 8.3% in the first five months, to 1,300 tonnes of pipes (200 tonnes in May 2018).
Mariupol Illich Steel Works, which is not a member of the association, reduced pipe production by 14.8%, to 50,500 tonnes (6,800 tonnes in May), while Kominmet saw an 18.8% decrease, to 61,700 tonnes (12,100 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle according to unofficial information.
As was reported, major pipe producers of Ukraine in 2017 boosted pipe production from ferrous metals by 23.5% from 2016, to 1,047,800 tonnes. Ukrtruboprom’s enterprises alone saw a 27.8% rise in output, to 705,500 tonnes.