NIBULON debts to be restructured by Lazard

NIBULON, one of Ukraine’s largest agricultural holdings, engaged the world’s largest independent investment bank, Lazard, to audit the company and restructure its debts, Latifundist.com sources in the banking market say.

People close to the matter say that the company made this decision six weeks ago, after the tragic death of the founder and CEO of the holding Oleksiy Vadaturskyi. At present, the company is managed by the son of the founder, the chairman of the supervisory board Andriy Vadaturskyi.

The total amount of the company’s debt to financial institutions, including the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), is about USD 500 million. This amount does not include trade finance, which, according to our sources, is slightly over USD 100 million.

“The move to involve Lazard is meant to increase the credibility of a neutral party that assesses the company’s situation and offers options for debt restructuring. In a way, it is a mediator who helps to find the right solution between the creditors and the borrower. We welcome this decision,” says a representative of one of NIBULON’s creditor banks.

After the audit, offers for creditors will be formed. They are likely to unite in a committee of creditors, which, in turn, will review these offers. However, some financial institutions may seek solutions not within the committee, but individually.

“Such restructurings are not that simple. In this particular case, we have a large number of creditors, each of which has his own interest. Some want to get back a certain part now and leave, others are ready to wait,” the banker said.

Latifundist.com asked NIBULON management to elaborate on the debt restructuring plans.

“In the situation of logistical collapse, when cabotage is blocked, logistics costs are sky-high, more than 10 company branches are under occupation and almost 2500 employees have been affected by the war, we are building new export routes and have reduced the loan portfolio by several hundred million dollars. We are convinced that the restructuring of the balance is in the interests of all, as the creditors will be able to collect the debts in the newly projected terms, and we will continue to implement UN programs on food security in the world and will have a break to start with new strength,” said Deputy General Director for Government Relations Mykhailo Rizak.

For context, the owner and founder of the company NIBULON and the Hero of Ukraine Oleksiy Vadatursky was killed in a massive shelling of Mykolaiv by the russian army on July 31. His wife Raisa died too.

Tags: Nibulon