INTERPIPE declares about the commencement of the bank debt restructuring process
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2013-11-25
In October 2013 INTERPIPE initiated negotiations with creditor banks regarding the restructuring of its indebtedness. Following advance notification that the company will need to reschedule the repayment of $106 million, originally scheduled for November 2013, Interpipe has initiated the process of negotiations on the amended payment schedule for the bankers’ loans.
Creditor banks have formed a managing committee, with whom INTERPIPE will hold a constructive dialogue to reconcile conditions required for the maintenance of the process. The parties will have to agree upon the amendments to the schedule of repayments for the principal pool loans, as well as some other amendments to the the loan agreements.
The company intends to continue interest payments on all borrowed funds in full. Interpipe’s operating activities are carried out in a standard fashion; all current payments are made on a regular basis; the company’s mills produce and ship their goods, and deliveries to customers are made on a timely basis.
“The major reason for a shift in the loan payments’ schedule relates to the current market situation, and specifically the drop in sales and profitability in Russia and the Customs Union (CU) countries, due to the delivery conditions change by CU for INTERPIPE pipe products. Additionally, the recession in the Ukrainian railcar construction industry, which, in its turn, has led to a drop in the purchase of INTERPIPE wheel products, has also affected the repayment schedule – INTERPIPE CEO Alexander Kirichko stated. – The company’s position as a global player will help to compensate in the regional reduction in sales. In 2014, the company will continue its diversification strategy, and it will focus on growing Interpipe’s profile in South America, the Middle East, and Europe”.
Reference
INTERPIPE is the integrated pipe and wheel company, a member of the TOP 10 list of the world’s largest seamless pipes’ producers and the third largest producer of solid-rolled railway wheels. The company’s products are marketed in more than 80 countries around the world through a network of sales offices located in the CIS, the Middle East, North America, and Europe. In 2012, the Company’s mills produced more than 1.2 million tons of pipe and wheel products.
Creditor banks have formed a managing committee, with whom INTERPIPE will hold a constructive dialogue to reconcile conditions required for the maintenance of the process. The parties will have to agree upon the amendments to the schedule of repayments for the principal pool loans, as well as some other amendments to the the loan agreements.
The company intends to continue interest payments on all borrowed funds in full. Interpipe’s operating activities are carried out in a standard fashion; all current payments are made on a regular basis; the company’s mills produce and ship their goods, and deliveries to customers are made on a timely basis.
“The major reason for a shift in the loan payments’ schedule relates to the current market situation, and specifically the drop in sales and profitability in Russia and the Customs Union (CU) countries, due to the delivery conditions change by CU for INTERPIPE pipe products. Additionally, the recession in the Ukrainian railcar construction industry, which, in its turn, has led to a drop in the purchase of INTERPIPE wheel products, has also affected the repayment schedule – INTERPIPE CEO Alexander Kirichko stated. – The company’s position as a global player will help to compensate in the regional reduction in sales. In 2014, the company will continue its diversification strategy, and it will focus on growing Interpipe’s profile in South America, the Middle East, and Europe”.
Reference
INTERPIPE is the integrated pipe and wheel company, a member of the TOP 10 list of the world’s largest seamless pipes’ producers and the third largest producer of solid-rolled railway wheels. The company’s products are marketed in more than 80 countries around the world through a network of sales offices located in the CIS, the Middle East, North America, and Europe. In 2012, the Company’s mills produced more than 1.2 million tons of pipe and wheel products.
