To avoid default, Ukrzaliznytsia attracts top lawyers from Britain

Ukrzaliznytsia has announced a tender for an international legal advisor to restructure over $1 billion of external debt.

This was reported by the press service of JSC Ukrzaliznytsia.

These are obligations raised before 2012 and later refinanced. The company plans to agree on new, balanced repayment terms in order to maintain the support of international financial partners and ensure uninterrupted cargo and passenger transportation.

Only law firms that are among the leading advisor ratings in the United Kingdom — the country of registration of the debt instruments issue — in the categories of debt capital markets and debt restructuring will be allowed to participate in the tender.

According to UZ representatives, local lawyers without a partnership with such companies cannot fully support such transactions. The international advisor, in particular, will prepare documentation, represent the company’s interests in negotiations with foreign creditors, and structure the deal taking into account the minimization of legal risks.

The procurement will be carried out through the Prozorro system. Payment will be made only for the services actually provided, and the amount of compensation will depend on the success of the transaction.

UZ emphasizes that high-quality legal support for the restructuring, which covers about 15% of the company’s assets, is critically important for stable operation and avoiding the risk of default.

Also, as USM wrote the day before, the volume of grain transportation in containers by rail has decreased by 10% over the past six months.