Steel-maker VSŽ freezes payment of yields from its bond issue

Slovakia's largest industrial company steel-maker, VSŽ a.s., Košice, announced on April 6 that it will not pay off yields from bonds due on April 4. Citing the company's on-going restructuring process, VSŽ officials said they will pay off the outstanding yield as soon as their financial situation improves, the announcement read.

The delayed yields are from a 700 million crown five-year bond issue of October 4, 1995, which matures on October 4, 2000. The issue carries a coupon payable twice a year - on April 4 and October 4. As the coupon pays the discount rate of the central bank (now at 8.8%) plus 3.5%, on April 4 the VSŽ should have redeemed 43 million crowns in total.

In early November 1998, VSŽ representatives admitted that they expected to end the year with a loss because of negative developments in the global metallurgy industry. They also announced plans to reduce their labor force, and to give up their stakes in financial institutions. The company was also facing problems paying off a syndicated loan of $35 million arranged by Merrill Lynch.

In late March, VSŽ representatives signed a "stand-still" agreement between VSŽ and the Bank Coordinating Commission.). Validity of the agreement is conditioned by approval of the main creditor - VÚB (Všeobecná Úverová Banka). The agreement includes provision of new financial sources for VSŽ in the amount of $50 million.

Get daily Slovak news directly to your inbox

Top stories

News digest: Slovakia still dealing with the loss of its talent

Economy minister promises extensive support for hydrogen technologies in Slovakia. Far-right supporters protested in front of PM’s house during the weekend.

The far-right ĽSNS organised a protest in front of PM Igor Matovič's house in Trnava.

Hospital manners expose the toxicity of Kollár

Unjustified privileges overshadow some good news of the coalition's work. Halloween testing will not be repeated during advent time.

PM Igor Matovič (l) and Speaker of Parliament Boris Kollár

Sulík’s party benefits from the dispute with PM Matovič

The Hlas party of former PM Pellegrini is rising, too.

Economy Minister Richard Sulík (l) was charged by PM Igor Matovič (r) to purchase millions of antigen tests.

Anyone can publish a book. Authors often avoid publishers

Self-publishing is setting a new trend.

Nikoleta Kováčová has published two cookbooks without the aid of a publishing house.