ISD carries out its commitments in paying the interests on all existing credits
Currently ISD Corporation is actively negotiating with a pool of international, foreign and Ukrainian banks as for the restructuring of a credit portfolio. One of the basic principles of the given process is a temporary moratorium on the repayment of indebtedness by the time all conditions of restructuring are completely coordinated with the creditors. The creditors in their turn take the commitment not to initiate the actions as for the enforced debt recovery.
These principles concern all the creditors of ISD Corporation without exception, including a special project company that has been created to attract financing from banks in the form of loan participation notes (LPN) in the amount of $150 mln which is a part of a credit portfolio under the restructuring. Recently this credit has been numerously mentioned in the press due to the expiry of the term of LPN settlement.
ISD Corporation keeps on observing a moratorium and respects the principle of equality of all the creditors of ISD Group. It should be underlined that before entering the process of restructuring and the moratorium’s entry into force, the Corporation met all the obligations in terms of LPN recovery. Thereby the sum of indebtedness is three times less than 150 mln US dollars mentioned by some mass media sources.
It’s known that ISD Corporation is not the only company which has experienced the aftereffects of the world financial crisis. A number of Ukrainian and Russian companies, among them “Naftogas of Ukraine”, “Interpipe”, “Severstal”, “Metalloinvest”, “Rusal” and “Evraz” have suffered because of two last years of instability at the world markets. These companies have resorted to restructuring which is an effective instrument of improving a complicated financial and economic situation.