Hedge Funds Form Group for Another $2.6 Billion Ukraine Deal
- Ukraine’s GDP warrants weren’t part of $20 billion bond deal
- Government has said warrants will also need to be restructured
A resident observes rescuers putting out a fire in a house destroyed during a missile attack in Kostyatynivka town, Donetsk region on July 21.
Photographer: Anatolii Stepanov/AFP/Getty ImagesA group of hedge funds invested in Ukraine is organizing ahead of debt-restructuring talks with the government to rework some $2.6 billion of GDP warrants, according to people with knowledge of the matter.
Funds including Aurelius Capital Management LP and VR Capital Group are part of the creditor group advised by Cleary Gottlieb Steen & Hamilton LLP, the people said, asking not to be named because the information isn’t public. Absent a restructuring deal, the cash-strapped government of Ukraine would be due to make two payments to warrant holders in August — a consent fee and a payment covering the 2021 period, two of the people said.