The Kharkov State Aircraft Manufacturing Company (KSAMC) has announced that it is unable to make payments on its series A-C bonds, which have a total nominal value of UAH 440 million, because of lack of funds. The Interfax Ukraine news agency reported this, citing information about the company in the National Commission on Securities and Stock Market’s information disclosure system.
Thus, the company’s obligations to bondholders will be fulfilled in accordance with the conditions for fulfilling obligations on government-guaranteed securities.
As reported, KSAMC issued bonds for a total of UAH 1.62 billion in 2009. The issue consisted of seven series: series A bonds worth UAH 300 million, series B bonds worth UAH 70 million, series D and E bonds worth UAH 220 million each, series F bonds worth UAH 357 million, and series G bonds worth UAH 383 million. The bonds have maturities of 63-72 months.
The series A-C bonds will mature on 10-11 November 2014.
The coupon yield on the series A-F bonds is set at 11% per annum for the entire duration of their circulation; the coupon yield on the series G bonds is 16.5% per annum for the first year of circulation. There are no provisions for early redemption of the bonds. The guarantor of payment of the debt principal is the government of Ukraine.
KSAMC, together with the Antonov state enterprise (Kiev) and the state-owned Civil Aviation Factory 410, became part of the Antonov State Aircraft Manufacturing Concern in 2008. KSAMC’s net loss (based on Ukrainian accounting standards) increased by 86.79% to UAH 330.11 million and its net revenue reduced by 12.91% to UAH 311.49 million in 2013.