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.
Kateryna Chechulina, counsel at CMS Kyiv, commented: “We are honoured to have advised the banks’ syndicate on adjusting the facilities to allow a standstill, which plays an important role in Kernel continuing its operations efficiently, remediating the damage to its assets from some direct hits by occupying Russian forces, and further improvement to Kernel’s resilience.”
Ihor Olekhov, partner and Head of CMS Banking & Finance Practice, added: “Agriculture is one of the main sectors of the Ukrainian economy, and one of the most impacted by the unprovoked invasion of Ukraine. Excellent local knowledge coupled with unparalleled international know-how, extensive experience in cross-border financings, and the availability of CMS experts on the ground in Kyiv during the ongoing war, enables us to efficiently handle complex matters within the tightest timelines for our clients in the agricultural, export-oriented and other sectors, keeping them on the top of things in these challenging times.”
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.
For further information, please contact:
Darina Gordienko
E: darina.gordienko@cms-cmno.com
T: +38044 391 3377
Notes to editors:
CMS
Founded in 1999, CMS is an integrated, multi-jurisdictional organisation of law firms that offers full-service legal and tax advice. With 80 offices in over 40 countries across the world and more than 5,000 lawyers, CMS has long-standing expertise both in advising in its local jurisdictions and across borders. From major multinationals and mid-caps to enterprising start-ups, CMS provides the technical rigour, strategic excellence and long-term partnership to keep each client ahead in its chosen markets.
The CMS member firms provide a wide range of expertise across 19 practice areas and sectors, including Corporate / M&A, Energy & Climate Change, Funds, Life Sciences & Healthcare, TMC, Tax, Banking & Finance, Commercial, Antitrust, Competition & Trade, Dispute Resolution, Employment & Pensions, Intellectual Property and Real Estate.
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