Metinvest BV said it will submit a new restructuring plan for $114 million of bonds maturing in two weeks after failing to win investor backing for a proposal to delay repayment of the debt.
The Ukrainian company withdrew the proposal after insufficient votes were cast before a May 1 meeting in London, according to a company statement. The nation’s largest steelmaker had asked holders of the 10.25 percent notes maturing on May 20 to accept 10 percent of the bonds’ face value now and defer the rest to January 2016.
The company is seeking to restructure $3.2 billion of debt after conflict in eastern Ukraine damaged infrastructure, disrupted deliveries and cut its access to international capital markets. Metinvest needs more time to repay its debt and to restructure $830 million of bank loans due this year, Chief Financial Officer Aleksey Kutepov said in an interview last month.
A group of holders of the 2015 notes hired law firm Kirkland & Ellis to challenge the original proposal, people familiar with the matter said on April 16.