Market Analysis

Corporation "Industrial Union of Donbass (IUD, Donetsk) is in talks to restructure its debt to 40 banks, said the director of Mission of the European Bank for Reconstruction and Development (EBRD) in Ukraine Andre Kuusvek.

"Bank - one of them, but we do not enter into a creditors" committee", - he said in an interview with the weekly "Contracts", published on Monday.

As explained Interfax-Ukraine "press-secretary of the EBRD in Ukraine Anton Usov, the amount of bank credit ISD is about $ 110 million

Kuusvek did not name the total amount of corporate debt to creditors. He also noted that the Bank knew in advance about an ISD negotiations for the sale of shares, but could not yet comment on the details.

"Today, we are neutral appreciate this bargain. positive side of the transaction that the sale of a corporation can gain access to Russia"s raw materials. In addition, the new shareholders will be able to helpus with financing," - said the director of representation.

He also said that in connection with certain financial difficulties ISD, the total value of Bank-financed project to build cogeneration facility at Alchevsk Metallurgical Plant has been reduced, and the timing of shifted.

"is now scheduled to launch in the cogeneration plant, not two turbines and one. Today, the amount of the project is $ 112 million, the turbine must be started in late 2010," - he said, recalling that the stated amount of the loan was $ 150 million, and ISD was to co-finance the project.

ISD was founded in 1995. Is an integrated holding company that owns stakes in companies mining and metallurgical complex. The corporation consists of Alchevsk Metallurgical Combine, Dnieper Metallurgical Combine them. Dzerzhinsky Steel Dunaferr (Hungary) and ISD - Huta Czestochowa (Poland). According to the international analytical agency "Metal Bulletin (London, UK) in 2008, the ISD was among the 30 largest steel producers in the world with the rate of more than 10 million tons of steel per year.

In January 2010 it was announced the purchase of 50% 2 shares of the Ukrainian corporation consortium of investors led by Alexander Katunin (owner of Swiss trader Carbofer, former co-owner of Evraz) with financial support from Russia"s Vnesheconombank (VEB).

owners of 49,99% shares of ISD remain current shareholders - Sergei Taruta and Oleg Mkrtchyan.

Bank in 2007 provided a loan company Ekoenergia - special purpose company, which is a subsidiary of ISD and its constituent Alchevsk Iron and Steel for the construction of cogeneration plants based on two combined-cycle turbines M701S (DA) production capacity of 303 MW Mitsubishi. It was later announced its intention to increase the number of units to three, and power - up to 450 MW.

Apart

Bank among other international financial institutions lend ISD - International Finance Corporation (IFC) of World Bank Group and the Nordic Investment Bank (Nordic Investment Bank, NIB).

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