Dragon Capital talks about default….

Dragon Capital: Ukrzaliznytsya misses payment on syndicated loan 91) ☆ Page 1/2
The state-owned railway monopoly Ukrzaliznytsya has missed a principal payment
on its $440m three-year syndicated loan attracted in 2007.
The company’s other external liabilities include a $700m seven-year facility
from Deutsche Bank, attracted in October 2004 and guaranteed by the government,
and a $120m long-term loan from the EBRD attracted in August 2004. While
Ukrzaliznytsya said it was making timely payments on the EBRD loan, we do not
rule out the company’s liquidity problems could complicate matters. On a
positive note, we clarified with government lawyers that the $440m loan, which
had been arranged by Barclays, and the state-guaranteed Deutsche Bank facility
were provided to two different legal entities and do not contain any cross
default covenants. Ukrzaliznytsya therefore can restructure the Barclays loan
without forcing the redemption of its state-guaranteed liability, and we expect
the restructuring to be completed in the near future.
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