Agroton bondholders approve restructuring after Cyprus freeze
KIEV Aug 7 (Reuters) - Ukrainian farming and foods processor Agroton said on Friday that holders of its $50 million of bonds have agreed to postpone payments due after most of the company's cash was frozen in a Bank of Cyprus account.
Agroton, a diversified agricultural group focused on grain and livestock farming and food processing, asked bondholders last month for permission to pay a $3 million coupon due on July 14 six months later and to extend the maturity of the issue by five years from January 2014.
Under an international bailout agreed in March, heavily indebted Cyprus froze deposits of more than 100,000 euros ($131,400) at Bank of Cyprus, its largest lender, and indicated depositors would lose some of their money.
Agroton had also asked bondholders to accept a cut in the interest rate on the bond to 8 percent from 12.5 percent and to allow the company to increase its overall debt. Investors voted on its proposal on Aug. 8.
The Warsaw-listed company said last month that out of about $4.5 million it had held in the bank at the end of March, $1.6 million had been converted into equity, $1 million had been written off and $1.9 million remained frozen.
Before its financial meltdown Cyprus was an attractive banking destination for companies from the former Soviet Union due to its low tax regime. Cyprus has treaties with more than 48 countries including Ukraine on avoiding double taxation. (Reporting by Natalia Zinets; Writing by Olzhas Auyezov)
- Atheists face death in 13 countries, global discrimination: study
- Missouri executes man for killing good Samaritan motorist in 1994
- Focus turns to Thai military, anti-government protesters tell them to pick sides
- Google executives' planes saved millions in costs due to error - NASA
- Apple scores legal victory over Samsung in South Korea