Ukraine Operator Defaults on $465 Million Debt

MOSCOW, Mar 1 (Prime-Tass) -- Ukraine's third largest mobile operator Astelit has announced a default on its outstanding US$465.371 million long-term debt, Turkish mobile operator Turkcell said in a statement obtained by Prime-Tass Thursday. Turkcell indirectly controls Astelit.

Astelit converted the debt into short-term debt of the same amount, which matured December 31, 2006.

Creditors agreed to move the default date to March 30, 2007.

The operator earlier took out a $390 million syndicated loan from ING Bank and Standard Bank but failed to meet the EBITDA target set in the loan agreement. EBITDA stands for earnings before interest, taxes, depreciation and amortization.

Astelit also included in the converted debt the $150 million loan it had received from Turkiye Garanti Bankasi and Akbank TAS.

The operator?s shareholders agreed to provide $250 million in aid.

Astelit is fully owned by the Netherlands-based Eurasia Telecommunications Holdings, which is 54.8% owned by Turkcell and 45.2% owned by Ukraine?s Sistema Capital Management.

Astelit's subscriber base more than doubled to 5.55 million people last year and was at 5.74 million people as of January 31.

Astelit launched service under the ?life:)? brand name in January 2005 and currently covers the territory where 90% of Ukraine?s population resides.

End"

Posted to the site on 1st March 2007