Slovenska industrija jekla faces a critical refinancing deadline.
The group is likely to extend its debt obligations agreement for one month as it struggles to meet the conditions set by creditor banks for refinancing approximately 300 million euros in financial obligations. A key requirement is the extension of the maturity of the SIJ8 bonds, valued at 41.1 million euros, which are due in November this year.
SIJ’s Debt Refinancing Negotiations Continue
SIJ has reportedly reached a preliminary agreement with over 85 percent of bondholders. A formal vote on this agreement will take place from January 26 to January 30. To extend the bond maturity, support from bondholders representing at least 75 percent of the total nominal amount is necessary.
Last year, a detailed refinancing agreement was established with creditor banks. The European Bank for Reconstruction and Development (EBRD) played a significant role in facilitating this agreement, advocating for a swift resolution to the refinancing of obligations.
Key Conditions for SIJ’s Financial Stability
SIJ’s assets are pledged in favor of creditor banks. One of the conditions for refinancing the debts includes the potential sale of the entire group, in which the Republic of Slovenia holds a 25 percent ownership stake.
Upcoming Steps for SIJ’s Bondholders
- Formal voting on the refinancing agreement from January 26 to January 30.
- Bondholders must support the extension representing at least 75 percent of the total nominal amount.
SIJ’s future hinges on successful refinancing negotiations.
