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DTEK Finance Plc (IRSH)

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Friday 27 March, 2020

DTEK Finance Plc

DTEK Energy update regarding the Covid-19 pandemic

RNS Number : 9425H
DTEK Finance Plc
27 March 2020
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by the Directors of the Issuer.


In response to the COVID-19 pandemic, on March 25, 2020, the Government of Ukraine instituted an emergency regime situation across the entire territory of Ukraine and extended quarantine measures until April 24, 2020. This has been officially recognized as a force majeure event for the purposes of Ukrainian law. In the current situation, every responsible business must concentrate its resources to maximize its support to its country and population.


DTEK Energy is the largest private electricity and coal producer in Ukraine and plays a systematically important role in ensuring the stability of the Ukrainian electricity sector, supporting the energy security of Ukraine, and fulfilling a significant share of domestic electricity and coal demand.

 
As a responsible business, DTEK Energy has two major objectives in the current emergency situation. First, the company must support Ukraine in the fight against the outbreak of COVID-19 by minimizing the number of people who may be affected by the virus. Second, the company must ensure the continuity of electricity generation and business processes to provide the population of Ukraine with an uninterrupted supply of electricity and heat. To fulfil these objectives, DTEK Energy has established a task force office which monitors the situation at the production facilities and offices and promptly responds to the emergency situations. As of today, DTEK Energy transitioned generation plants to a special operating regime where all critical staff have been isolated in quarantine zones of the plants to reduce the risk of COVID-19 spreading. Further, on March 18, 2020, the company has implemented a special quarantine work schedule at some of DTEK Energy enterprises and instructed many of the company's employees to work remotely.


"On March 25, the Government of Ukraine enforced the emergency regime situation in Ukraine and the state of quarantine until April 24, 2020. This means that DTEK Energy must take all required steps to maximize the concentration of resources in order to provide maximum support to the state and secure energy supply in Ukraine," - said Dmytro Sakharuk, DTEK Energy CEO.


In the context of the increasing concerns around the COVID-19 pandemic, unprecedented financial markets deterioration, and commodity prices collapse, and their combined impact on the Group's financial position and operations, DTEK Energy is in the process of developing a standstill and debt restructuring proposal (the "Proposal") with respect to its 10.75% Senior PIK Toggle Notes due 2024 and certain bank indebtedness and expects to share the Proposal with noteholders and bank lenders in due course. Consequently, the interest coupon due on the Notes on April 1, 2020 will not be paid on April 1, 2020 and interest on the Bank Debt will not be paid on March 31, 2020, but will instead be paid in accordance with the terms of the Proposal.
 
DTEK Energy asks the investment community to support the company in pursuing this difficult decision. Today, it is critical to stand firm and united in the fight against COVID-19 pandemic.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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