OREANDA-NEWS. February 09, 2011. Credit Suisse and Deutsche Bank have demanded that Ukrtelecom redeem its residual debt of USD 222mn ahead of the maturity date, Interfax reported Feb 8. According to the lender’s notice, Ukrtelecom is due to repay USD 56mn on Feb 25, 2011 whilst redemption of the principal is set on May 25, 2011.

Millennium Capital considers this news as NEGATIVE for Ukrtelecom. Despite previous efforts of the company, Ukrtelecom failed to negotiate the deferral of semiannual installment payment (USD  56mn) on the USD 500mn loan taken out in 2005. On top of that, creditors exercised their right to demand early repayment of the residual debt (USD  166mn) which is due in 2012.