(Bloomberg) -- A group of investors in Ukraine’s GDP warrants has hired PJT Partners Inc. as their financial adviser ahead of a potential restructuring, according to people familiar with the matter.
The investors include funds such as Aurelius Capital Management LP and VR Capital Group and are also being advised by Cleary Gottlieb Steen & Hamilton LLP, Bloomberg reported earlier.
The group owns over a quarter of the $2.6 billion warrants issued and was formed in response to Ukraine’s decision this year to stop servicing the warrants starting from May 2025, the people said, asking not to be identified because the details aren’t public. The warrants weren’t included in a $20 billion debt restructuring deal for Ukraine’s bonds that was approved by private creditors in August.
A representative for PJT declined to comment.
The warrants include disbursements linked to Ukraine’s economic performance, providing creditors with payments if gross domestic product expansion exceeds certain levels. They were issued as a sweetener during a previous debt revamp in 2015.
The notes, which mature in 2041, were trading at about 70 cents on the dollar on Monday, their highest level in more than two years. In the wake of Russia’s full-scale invasion of Ukraine in 2022, the warrant holders agreed to a two-year moratorium and changes on coupon payments, as well as a call option that expires on July 2027.
Ukraine’s economy grew 5.3% last year as it reasserted control of a Black Sea export corridor and harvested a bumper crop despite continued Russian missile and drone attacks. Growth is expected to slow to 3.7% this year, according to the central bank.
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