According to Ukraine-based DTEK’s CEO Maxym Tymchenko, the energy firm is planning on the sale of coal assets in Russia.
The company is looking to divest its stake in OJSC Obukhovskaya Colliery Group and OJSC Don-Anthracite (Rostov region, Russia).
Proceeds from the sale would be utilised towards reducing its debt of c.$436 m.
Previously, DTEK was negotiating with lenders to restructure its debt.
Mr. Tymchenko said that coal production by the company’s assets in Russia in 2016 will be around 2.6m tonnes of coal. The company seeks to sell 60% of coal in Russia and the rest of coal in Europe.
Ukraine-based coal mining and power generation firm DTEK postponed its bond coupon payment to await the outcome of its restructuring plan with lenders.
DTEK delayed a coupon payment of about $8.3m on its 10.375% bond due 2018 which was due to creditors on 29 March 2016.
DTEK’s subsidiary and bond issuer DTEK Finance PLC, in a regulatory filing on the London Stock Exchange, stated that coupon payments would be made in accordance with the terms of the restructuring proposal put forward to lenders.
Bonds as part of the company’s restructuring plan are its $750m bonds due 2018 paying 7.875% and $160m bonds due 2018 paying 10.375%.
Source: Interfax Ukraine