By KYIV. Oct 23 (Interfax-Ukraine) – Following the results of negotiations that began in the spring of this year, the Kernel agricultural holding extended the validity of waivers for another year – until June 30, 2024 – for all pre-war loans totaling $773 million, and will pay until this date they are interest only, the company said in a statement on the Warsaw Stock Exchange.
“The Waiver Letters aim to bolster the Group’s financial resilience during the Effective Period. The Group extends its gratitude to its Lenders for their unwavering support in these challenging times,” the press release said.
The necessary approvals have been obtained, in particular, for loans from the ING PXF Facility, the Natixis PXF Facility, the EBRD Facility, the EIB Facilities, and bilateral agreements with both European and Ukrainian banking institutions. Within their framework, the agricultural holding achieved not only a deferment of the repayment of the principal amount of the debt, but also a waiver of these potential or actual default events arising as a result of a full-scale war in Ukraine.
In addition, the report says, the Kernel’s waiver documentation permits the repayment of pre-war Facility Agreements at a minimum discount of 25%. One of the Group’s lenders has already consented to the complete settlement of its exposure at this 25% discount rate.
The Waiver Letters outline several conditions set forth by the creditors for the Group. These include maintaining a CapEx basket to sustain ongoing operations and executing Cash-sweep prepayments, among other stipulations.
Kernel said that Notably, one of the conditions – shareholders’ support through a new equity injection of $60 million – was fulfilled on 1 September 2023.
The company also said that it remains committed to settling all eurobond coupon payments and ensuring punctual interest payments on all credit facilities as outlined.
