Ad Hoc Creditor Committee concludes consultation period with the Government of Ukraine

NOT FOR DISTRIBUTION IN ANY JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW. LONDON, June 17, 2024 /PRNewswire/ -- On Friday, 14 June 2024, the Ad Hoc Creditor Committee of holders of Ukraine's Eurobonds (the "Committee") concluded a constructive 12-day consultation period with representatives of the government of Ukraine ("Ukraine"). Held at Ukraine's request, the consultation period was part of the ongoing process to assist Ukraine with the potential restructuring of Ukraine's Eurobonds listed in Annex A.   The purpose of the consultation period was to facilitate an exchange of ideas between Ukraine and the Committee enabling the Committee to engage in constructive conversations with Ukraine and its advisors, the International Monetary Fund (the "IMF") and the Group of Creditors of Ukraine (the "GCU"). While it was understood at the outset that the consultation period was unlikely to result in a deal, the consultation period marked a constructive step in the ongoing discussions. Earlier today Ukraine announced details of the outcome of the consultation period, together with details of the various restructuring proposals shared between the parties, including: (i) Ukraine's initial restructuring proposal (the "Sovereign Proposal"); (ii) the Committee's initial restructuring proposal (the "Original Committee Proposal"); (iii) certain details of Ukraine's reaction to the Original Committee Proposal (the "Sovereign Response"); and (iv) a revised Committee restructuring proposal (the "Adjusted Committee Proposal"). In addition to the details shared by Ukraine earlier today, the Committee seeks to provide further context on these materials by providing further detail on the Committee's response to the Sovereign Proposal set out in Annex B (the "Committee Feedback").  The Committee remains committed to working with Ukraine to find a solution that is compliant with the July 2023 IMF Debt Sustainability Analysis targets under the IMF's baseline scenario and to the solution being compatible with the GCU's principles of comparability of treatment (subject to further clarification from the GCU on assessment criteria).  The Committee looks forward to their advisors continuing the discussions going forward. The Committee is being advised by Weil, Gotshal and Manges (London) LLP and PJT Partners (UK) Ltd. Annex A Eurobonds Annex B Committee Feedback UKRAINE EUROBOND TREATMENT RESPONSE TO SOVEREIGN PROPOSAL On Monday 3 June 2024, Ukraine and its advisers presented a restructuring proposal ("Sovereign Proposal") in relation to Ukraine's Eurobonds to the Creditor Committee under NDA. As a follow-up, Ukraine and its advisers requested feedback on, amongst other things, the Sovereign Proposal. The Creditor Committee has considered the Sovereign Proposal and outline below their collective feedback which they hope will assist Ukraine and its advisers to discuss the re-formulation of the Sovereign Proposal with the official creditors of Ukraine ("GCU") and the International Monetary Fund ("IMF"). The feedback is also the result of extensive discussions that took place before the restricted period as part of a market feedback gathering exercise with significant bondholders outside of the Creditor Committee and accordingly represents widely canvassed views of market participants. The Creditor Committee and its advisors remain committed to working with Ukraine to structure a transaction which may attract the requisite support from market participants. N.B. This is an indicative and non-exhaustive response and does not address all of the points raised or made in the Sovereign Proposal (or may only address elements thereof). This should not be construed as, and does not constitute, acceptance of any such points or elements not addressed and nothing in this response shall constitute a waiver, acceptance or suspension of any rights of any party in respect of the Eurobonds and/or the Warrants. This response does not constitute (nor will it be construed as) (i) an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction or (ii) a solicitation of any consent to any action, it being understood that such an offer or solicitation of consents, if any, will only be made in compliance with applicable provisions of securities, bankruptcy, and/or other applicable laws. Note (1): Forecasts reflect certain assumptions, including (i) financing assurances by Official Sector in line with IMF Baseline, (ii) treatment of GDP-linked warrants and (iii) GDP figures adjusted for latest actual figures.  Photo: https://mma.prnewswire.com/media/2439859/Ad_Hoc_Debt_to_GDP.jpgPhoto: https://mma.prnewswire.com/media/2439860/Ad_Hoc_GFN_to_GDP.jpg     View original content:https://www.prnewswire.co.uk/news-releases/ad-hoc-creditor-committee-concludes-consultation-period-with-the-government-of-ukraine-302173982.html

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