Metinvest Plans to Propose Scheme of Arrangement in U.K. Court

Metinvest BV, the steelmaker controlled by Ukrainian billionaire Rinat Akhmetov, said it issued a practice statement letter to propose a U.K. debt restructuring, known as a scheme of arrangement.

The scheme provides for a moratorium, which will prevent bondholders from taking enforcement action and is meant to give the company time to negotiate with investors, Metinvest said. The letter was sent to holders of $1.1 billion of bonds maturing in 2016, 2017 and 2018.

Metinvest is seeking to restructure more than $3 billion of debt after shelling and mortar attacks hit almost all of its facilities in eastern Ukraine, hurting production and reducing its access to international capital markets. The company has said it would seek a scheme of arrangement in a bid to sidestep bondholders that are seeking to be fully repaid.

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