DTEK Energy has signed a standstill agreement with its lending banks
OREANDA-NEWS. DTEK Energy has signed a standstill agreement with its lending banks. This agreement will enable the Company to pursue negotiations and with its creditors in a stabilized environment with a view to quickly reach a consensual agreement.
This standstill agreement will be automatically extended until 28th January 2017.
By the end of this year, DTEK Energy expects to sign an agreement on the terms and conditions of the long-term restructuring of its debts.
In accordance with the standstill agreement and until the end of the latter, the Company will pay the banks 10% of the accrued interest on a monthly basis. On top of that, at signing of the standstill agreement, the Company will pay the banks 10% of the initially accrued interest as well as a one-time fee equivalent to 0.25% of the total bank loan principal amount. In case the standstill needs to be kept in place, an additional 0.25% fee will also be payable on 28th October 2016.
DTEK Energy intends to offer equal standstill conditions to its lending banks and Eurobond holders. To this end, the agreement with the Eurobond holders will be amended to fully reflect the terms of the standstill agreement with lending banks.