Ukrzaliznytsia plans to restructure more than $1 billion of external debt
8 August 2025 19:18
Ukrzaliznytsia JSC has announced a tender to engage an international legal advisor to support the restructuring of its external debt exceeding $1 billion. This was reported by the company’s press service, "Komersant Ukrainian" reports.
What is this debt?
- It is a debt raised before 2012 and subsequently refinanced.
- The amount of debt is about 15% of the company’s assets.
- According to Oleksandr Pertsovsky, Chairman of the Board, the debt arose during the launch of Intercity trains, when the infrastructure and rolling stock were financed by loans.
Why do you need a legal advisor?
- UZ is looking for a company with experience in debt restructuring under the laws of England, Wales, the United States and other jurisdictions.
- The selection will be made among leading law firms specializing in debt capital markets.
- The goal is to ensure a strong legal position in negotiations with foreign creditors and avoid default.
Why is it important?
- The restructuring will allow the company to maintain stability, continue freight and passenger transportation, and attract new investments.
- In the event of a default, UZ will lose the ability to finance its development, including the Intercity network.
In July, Ukrzaliznytsia carried 2.7 million passengers, up 14% year-on-year.
In the first half of 2025, the company transported 79.6 million tons of cargo, down 11.8% from 2024.
