Banks demand USD 37 mln from WESTA

Обзоры по компаниям и отраслям 03.01.2014 Ukraine’s leading car battery producer WESTA ISIC (WES PW) filed four current reports between Dec. 24 and 30 revealing that banks have submitted claims to demand the repayment of loans at an aggregate amount of USD 36.6 mln. The company reported it negotiated with the banks on settling the claims. Alexander Paraschiy: The indicated inability of WESTA to repay its debt is clearly a worrying signal, though it’s worth noting that its 4Q13 debt repayment schedule was very tough. WESTA was due to repay USD 46.1 mln in loans over the quarter, or 21% of its total debt outstanding as of end-September 2013 (USD 217.1 mln). WESTA’s total 9M13 EBITDA was just USD 10 mln. With no significant turnaround in production and profitability, the company is unlikely to be able to settle even a softer repayment schedule (of USD 35 mln) for the next nine months.