The working capital offer will allow the Company to complete the 2016 spring sowing campaign and harvest season. The credit is conditional upon successful approval of the restructuring agreement by a majority of creditors.
MRIYA Agro Holding is in the process of negotiating with the coordinating committees of creditors and bondholders the non-binding terms for restructuring its debt portfolio, including the amendments required by the new credit line. The updated restructuring terms were sent to the creditors for their consideration; according to the agreement, MRIYA’s debt will be reinstated at the maximum level of USD 300 million, including secured creditors, senior debt, and the new working capital facility for the 2016 season. The existing debt in excess of the reinstated amount will be converted into an equity-like instrument, giving the creditors the full benefit of recovering Company value through any liquidity event.
“I would like to emphasize that MRIYA’s restructuring process is unique for Ukraine as it gives full equity benefits to the creditors. Moreover, a large number of stakeholders with diverse interests are involved in the process, each of whom act within their own procedures. Our task now will be to coordinate the acceptance of the terms by the majority of the creditors, merge, and consolidate all individual loan agreements into a new standard loan document that is acceptable for all parties and in compliance with both Cypriot and Ukrainian legislation. And we hope that we can complete all the necessary legal and administrative procedures quickly,” said Ton Huls, CFO, MRIYA Agro Holding.
MRIYA has requested its creditors to give their approval for the restructuring terms and working capital before the end of March 2016, so that the company can receive the additional working capital by late April.
The negotiations also led to a further extension till end of April of $9 million of the working capital credit received by MRIYA in June 2015. In November 2015, MRIYA repaid USD 16 million of this USD 25 million credit line.
