Naftogaz has been heavily impacted by the ongoing conflict in Ukraine resulting in the default of its 2022 notes and subsequently its 2024 and 2026 notes. A Hogan Lovells team, led by Business Restructuring and Insolvency partners Alex Kay (London) and Chris Donoho (New York), with support from senior associates Alex Snell and Rob Peel (London), worked with the ad hoc group, navigating them through the associated complexities of the deal and the competing interests of other stakeholders.

The negotiated terms, which received over 91% of the 2026 bondholders support and approval from the Cabinet Ministers of Ukraine, saw an extension of the maturity dates for the 2026 notes, (with 50% of the outstanding principal being redeemed in November 2027 and the remainder in November 2028) with similar adjustments made for the 2022 notes. In addition, the team negotiated for the creation of a 2026 interest payment fund, the amendment of covenants, cash payment for the last semi-annual coupon in the two-year deferral period and a restructuring fee.