Debt Restructuring and Sale of the Company: Method by Interlegal
15 March, 2024
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Our team has successfully restructured financial debt between the Client’s companies. The Client’s foreign parent company financed its Ukrainian subsidiary through a loan. Due to currency restrictions imposed by the NBU, it was impossible to repay the loan and accrued interest. Interlegal lawyers developed a detailed procedure for debt conversion into equity of the Ukrainian company (debt-to-equity swap) and provided complete legal support to the Client in the process its implementation. As a result, the Ukrainian company’s debt was fully covered, which allowed its further sale to a potential buyer.
Following successful and quick closure of the financial debt, we provided legal support for the Client during sale of the Ukrainian company’s participatory interests.
Interlegal Corporate and Taxes team used a comprehensive approach in order to achieve the Client’s goal.
Debt-to-equity swap is quite a new instrument for debt restructuring in Ukraine, but it has become particularly relevant in recent years due to currency restrictions imposed by the NBU.
Interlegal partner Irina Voyevodina led the project and managed law team: associate attorney Dmytro Bondar, lawyer Ihor Danyliuk and junior lawyer Oleksandra Savielieva. Interlegal provides legal support for transactions with participatory interests, jointly with legal advice upon methods of restructuring and closing your company’s financial debts. For more information, please contact Interlegal Corporate and Taxes associate attorney Dmytro Bondar.
