CMS advised ING-led syndicate on restructuring repayment terms for Kernel PXF
International law firm CMS has advised a syndicate of banks led by ING Bank N.V. on an adjustment to the loan repayment terms under the USD 450m pre-export facility for Ukraine’s Kernel Group. The adjusted repayment terms and conditions for their application during the period of standstill granted by the lenders have been developed based on IBR prepared by international financial advisers and agreed in parallel by majority of Kernel’s bank creditors, including Natixis, EBRD, EIB and various Ukrainian banks. The terms included the postponement of principal repayment, a cash sweep in favour of the involved bank lenders. During the negotiations of the standstill terms, CMS also advised the PXF-lenders on the impact of Kernel’s de-listing on the PXF facilities and assisted with the implementation of the transition from LIBOR to a risk-free rate under the PXF facilities.
The adjusted terms contribute to Kernel’s financial stability and allow further improvement to the resilience of the Kernel Group’s operations and business against ongoing actual or potential risks resulting from Russia’s continuing illegal aggression against Ukraine.
Kernel Holding is Ukraine’s largest producer of sunflower oil, which it exports to over 70 countries around the world.
The CMS international team was led by Kateryna Chechulina, English and Ukrainian law qualified counsel, under supervision of Elitsa Ivanova, English law qualified partner, and comprised of Ukrainian team of Ihor Olekhov, partner and Head of Banking & Finance Practice, Ivan Pshyk, Iryna Barlit and Ruslan Dotsenko (Banking & Finance) and others; CMS lawyers in Switzerland, led by partner Dr Kaspar Landolt and in Luxembourg, led by partner Vivian Walry.