According to the official information released on Warsaw Stock Exchange by Agrton, company’s bondholders agreed to secondary debt restructuring, requested in the end of Novermber, 2013. Interest payments previously scheduled on January 14, 2014 and July 14, 2014 are currently moved to January 14, 2015. Interest rate was lowered to 6% and company was granted the right to buy back its own bonds. Voting rights of the bondholders were modified to allow for 50% of the holders to vote for the important decisions, down from previous requirement of 75%.

The main reason for debt restructuring of Agroton was the situation, which company faced in 2013 as Bank of Cyprus, where company was holding main share of its cash froze company’s accounts and imposed holding fee to be paid out later. Such action lead to a 4-fold decline of company’s share price as it no longer was able to pay interest on debt.

Author: Alex Morgun, Financial Analyst, UkrAgroConsult

UkrAgroConsult