Asters advises IPnet on an intragroup loan restructuring through the debt-to-equity swap

Asters acted as a Ukrainian legal counsel to Industrial Media Network PrJSC (IPnet), a leading provider of telecommunication services in Ukraine, in connection with the intragroup loan restructuring via the debt-to-equity swap – a generally recognized instrument of corporate finance. The debt restructuring was the first to be carried out in Ukraine with the use of this instrument in accordance with the new corporate and currency control regulations.

The debt-to-equity conversion resulted in the transfer of USD 3 million loan obligations owed to a foreign parent company into additional shares of IPnet.

Asters' advisory role included full legal support on all matters, including the analysis of possible conversion methods, drafting necessary contractual documentation, carrying out additional issuance of shares, registration of shares issuance, prospectus of shares issuance and report on results of shares placement with the National Securities and Stock Market Commission, carrying out all procedures with the National Depository of Ukraine and the shareholder's depository institution, and advising on other matters of corporate, commercial and company law.

Asters' business law team advising on the project consisted of partner Vadym Samoilenko and senior associate Maryana Sayenko.