City of Kiev Creditors Reject Debt Offer They Say Isn't Fair
- Bondholder group represents owners of Kiev's 2015, 2016 notes
- Municipality made proposal after restructuring talks failed
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A committee of investors rejected terms put forward by Ukraine’s capital to restructure its foreign debt after negotiations with the group failed to reach an agreement on easing the city’s $550 million debt burden.
The bondholder group won’t support terms offered by the City of Kiev, including a 25 percent reduction to face value and a switch to new sovereign notes maturing 2019 and 2020, according to an e-mailed statement. The committee, which didn’t identify its members, said they owned a combined 38 percent of the bond that was due last week and 22 percent in a note maturing next year.