Ukrainian Railways seeks intl legal advisor to restructure $1 bln+ external debt
Ukrainian Railways (Ukrzaliznytsia) has announced a tender to hire an international legal advisor to guide the company through a highly complex restructuring of its external debt, which exceeds $1 billion—roughly 15% of the company's total assets. The company made the announcement in a Facebook post on Friday.
"We're talking about debt obligations exceeding $1 billion – initially raised prior to the 2012 infrastructure projects and later refinanced. It's now critically important to negotiate new, balanced repayment terms. This will allow Ukrzaliznytsia to continue receiving support from international financial partners and fully sustain both freight and passenger operations," the company stated.
Ukrzaliznytsia said that the selection process would target firms with top rankings in the UK – where the bond issuance is registered – and specifically those recognized in the areas of capital markets and debt restructuring.
"Unfortunately, during this difficult period, we must find resources for these additional costs in order to address debt that has been accumulating since 2012. Sometimes you're the one stuck sorting out problems that have been piling up for years," added Ukrzaliznytsia CEO Oleksandr Pertsovsky in a separate Facebook post.
The selected legal advisor will be tasked, among other responsibilities, with structuring the transaction in a way that minimizes the debt burden and legal risks.
The company emphasized that the tender is for a substantial amount – reflecting the size of the debt at stake. The expected value of the legal services has been determined through market analysis and consultations with leading international law firms. The amount reflects the lowest price proposal received during the request-for-proposals phase and covers a service period of 12 months.
"Even so, we expect not just fair competition during the open auction, but also additional price reductions during the bidding process," the company added. Compensation will be based solely on actual services rendered, with fees tied directly to the success of the restructuring deal.
"Proper legal oversight of Ukrzaliznytsia's $1 billion external debt restructuring is absolutely critical for navigating every phase of the process and achieving a result that ensures the company's long-term operational stability and prevents the risk of default," the statement concluded.
Back in September 2024, Ukrzaliznytsia held a tender for external legal support, which was won by Dechert LLP with a bid of UAH 12.907 million, significantly undercutting the initial estimate of UAH 26 million.