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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

UNITED BAVARIAN BANK RESTRUCTURES ORIANA DEBT

13 November, 2012 - 00:00

Kalush’s Oriana Co. has gained a one year extension on its DEM 212.5 million debt from Germany’s United Bavarian Bank, Ivano-Frankivsk deputy governor Mykola Shkribliak told InfoBank. He, Oriana CEO Stepan Chernyk, and First Deputy Industrial Policy Minister Oleksiy Holubov negotiated restructuring. Although Oriana has not yet begun repayment, the Ukrainian government which provided guarantees has had to pay DEM 46 million. The agreement reached provides that Oriana will repay the two remaining installments of DEM 24 million each in June 1999 and January 2000. In exchange, the Germans insist Oriana deposit part of the $20 per ton it makes on processing diesel fuel in escrow for the loan’s repayment. Oriana (1 million ton capacity showed a profit in the first quarter after three years in the red. In March, Germany threatened to halt all credit lines to Ukraine unless progress was made in settling Oriana’s debt.

 

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