Ukraine’s Naftogaz Faces Opposition From Creditor Group on Latest Restructuring Plan

  • Creditor group disagrees with plan given Naftogaz’s finances
  • Group’s backing seen as necessary for restructuring approval
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The latest debt restructuring proposal from Ukraine’s state-run oil and gas company, NJSC Naftogaz Ukrainy, faces opposition from a group that rejected previous plans to defer principal and interest payments on $835 million of already-defaulted debt.

A group of creditors advised by Cleary Gottlieb Steen & Hamilton LLP disagrees with Naftogaz’s restructuring proposal Bloomberg Terminalbecause it believes the company is able to make the payments, according to a person familiar with the matter, who asked not to be identified discussing private information. The group has enough sway to prevent Naftogaz from getting the support of 75% of creditors that’s necessary to approve a restructuring, the person said.