April 4, 2022
MHP SE, Ukraine's biggest poultry company given additional time to pay interest
MHP SE, Ukraine's biggest poultry company has been given an extra nine months by its creditors to pay interests of US$1.4 billion of bonds, but the company will not be able to raise more debt and have restrictions imposed on using its cash during this period, Bloomberg reported.
Dr. John Rich, executive chairman of MHP, said the important thing for MHP now is to plant its spring crops and harvest its winter crops in the ground.
MHP is preparing to begin its sowing campaign early next month and restart exports. For its exports, it will use trucks as Russia's invasion into Ukraine cut MHP from its seaborne export routes.
Following Russia's invasion, many Ukrainian companies have been looking to save cash as the conflict has disrupted businesses. MHP did not pay its coupon payment on March 19 as it aimed to preserve liquidity ahead of a sowing campaign, and has looked to postpone US$126 million of short-term bank lines.
MHP's had $228 million of cash on its balance sheet as of March 21. Its three dollar bonds are indicated at about 40 cents on the dollar on March 30. S&P Global Ratings downgraded the bonds to its default level last week.
Another Ukraine agriculture firm, Kernel Holding SA, is discussing with bank lenders to delay its loan repayment through to September this year.
- Bloomberg