Hogan Lovells’ London restructuring team led by partner Alex Kay has acted as lead transaction counsel and advisor to the ad hoc committee of Noteholders in the successful, landmark US$1 billion restructuring of Mriya Ago, the Ukrainian agricultural conglomerate.
Completion of the restructuring is the culmination of a multiyear process which has resulted in the first example of creditors taking control of a Ukrainian corporate.
The Hogan Lovells team played a key role in the design and implementation of the transaction which was based on a novel structure involving a non-cash consideration sale out of a Cypriot liquidation coupled with a voluntary exchange offer and consent solicitation and multiple Ukrainian bankruptcy processes. This allowed Mriya to restructure its US$471 million of senior notes and US$500 million of defaulted bank and trade debt using a single process.
As a result of the restructuring Mriya’s operating group has been transferred to ownership of a newly incorporated English company – Mriya Farming Plc. Participating creditors of Mriya have received new shares and English law senior secured notes listed in the Channel Islands each issued by Mriya Farming. Participating creditors also received certificates that give them the right to receive future recoveries through the ongoing liquidation of Mriya.
Hogan Lovells also acted as lead counsel in the provision of US$71 million of senior secured working capital rescue financing to the Mriya group which allowed Mriya to continue as a going concern since being placed in provision liquidation in February 2015.
The transaction was led by Alex Kay (Partner, BRI) with support from Celine Buttanshaw (Senior Associate, BRI) and Derek Meilman (Partner, Corporate), Karla Dudek (Counsel, Corporate), Hannah Wilson (Senior Associate, Corporate), Sylvain Dhennin (Partner, IDCM), Jonathan Morris (Associate, IDCM), Jill Barraclough (Senior Associate, IDCM), Jennifer Lowe (Associate, IDCM), Fadzai Mandaza (Associate, IDCM), Philip Schuster (Associate, IDCM), Philip Harle (Partner, Tax), Christopher Hyde (Senior Associate, Tax), Adela Komorowska (Associate, Tax), Fergus Kent (Associate, BRI), Louise Pederson (Trainee, BRI) and Zachary Tan (Trainee, Corporate).