Creditors grant Ukraine’s poultry firm more time

LONDON: Creditors to Ukraine’s largest poultry producer MHP SE has agreed to grant the company an extra nine months to make interest payments on US$1.4bil (RM5.89bil) of bonds.

A majority of bondholders voted in favour of extending the grace period on coupon payments to 300 days, said the company in a statement.

The company won’t be able to raise more debt and will have restrictions in using its cash in this period.

Ukrainian companies have been seeking to save cash after Russia invaded the country in February, disrupting their business.

MHP skipped a coupon payment on March 19 as it sought to preserve liquidity ahead of a sowing campaign.

Kernel Holding SA, another Ukraine-based farming company, is in talks with its bank lenders to postpone loan repayment through to September.

“We have had enormous support from all stakeholders,” Dr John Rich, executive chairman of MHP, said in a phone interview with Bloomberg.

“Now the key thing for MHP is to plant its crops.

“We are going to be planting spring crops and harvesting the winter crops we have in the ground.”

All three of MHP’s dollar bonds, downgraded to default level by S&P Global Ratings last week, traded at about 40 US cents (RM1.68) on the dollar at press time.

As MHP readies to start the sowing campaign in early April, it is also restarting exports, resorting to trucks as the conflict with Russia cut the company off from its usual seaborne shipment routes, management said in an interview with Bloomberg News last week.

The company had US$228mil (RM958.51mil) of cash as of March 21, management said. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Poultry , Ukraine


Next In Business News

Bursa Securities to delist Scomi, dismisses regularisation plan extension application
Stocks rise after bank sale underpins investor confidence
TT Vision sees good growth potential in overseas market this year
Walgreens quarterly profit beats estimates on strong pharmacy performance
Kamunting Management to buy remaining 40% stake in E&O for RM46.95mil
Ringgit closes higher as demand for US$ weakens
PT Resources takes a longer-term view for growth
Press Metal, PChem lead CI rally on Bursa Malaysia
Alibaba to split into six units, likely to pursue separate IPOs
Carimin Petroleum accepts vessel supply order from PETRONAS Carigali

Others Also Read