Restructuring of Restructuring

Kseniya V. Ostrovska, Nataliya M. Selyakova

The Ukrainian financial market has already experienced several waves of debt restructuring, and as time passes, restructuring tends to become more and more complex and stressful. Initially, debt restructuring was limited to repayment rescheduling and extensions; however, restructuring of restructured debt (as is on the agenda now) becomes more complex. In the current economic and political environment, lenders consider prospective restructuring with a high degree of scrutiny. In addition, yesterday’s reliable borrowers have been raising funds from all sources available, so now with defaulted facilities, the creditors have to face a line of other creditors standing against the distressed assets not capable of covering the indebtedness outstanding...