Interpipe confirms its talks with creditors on USD 106 mln debt

Обзоры по компаниям и отраслям 26.11.2013 Top Ukrainian pipe producer Interpipe (INPIP) confirmed on November 25 that it has launched negotiations with creditors to restructure a principal repayment of USD 106 mln that remains for 2013. At the same time, the company reiterated that it continues to timely service its debt. As the reason for its repayment difficulty, Interpipe cited a decline in sales to the Customs Union, as well as production decreases at Ukrainian railcar plants, which lowered the purchases of wheels from the company. Roman Topolyuk: The company disclosed no information regarding its principal redemption scheduled for 2014 and beyond. However, local media reported Interpipe will have to deal with repaying USD 300 mln next year, which could be problematic in our view once Ukraine doesn’t make a clear step towards the Customs Union. Interpipe is enduring the results of losing its positions on the Russian market after the Customs Union didn’t extend the quota for duty-free supply of pipes in 2H13. Thus, the company may expand the scope of its second round of restructuring next year if trade relations with the Customs Union worsen. Production at Interpipe’s tube plants fell 15% yoy to 773 kt in 10M13, data from Ukraine’s Metall Kurier imply. Interpipe Steel, a brand new steel plant, reduced its capacity load from 98% in April to 56% in October (60 kt of steel).