The latest debt restructuring proposal from state-owned oil and gas company NAK Naftogaz Ukrainy has faced opposition from a group of creditors that has rejected tentative plans to defer principal and interest payments on an already defaulted $835 million debt. It is reported by Bloomberg.

Creditor group disagrees with Naftogaz's restructuring proposal as it believes the company is capable of making payments. This was reported to Bloomberg on condition of anonymity by a person familiar with this issue.. According to the interlocutor, the group has enough influence to prevent Naftogaz from obtaining the support of 75% of creditors necessary to approve the restructuring..

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The Ukrainian government asked the country's largest energy company to freeze its debt for two years and effectively blocked payments to bondholders to save money on gas purchases after the Russian invasion.. Therefore, in July last year, Naftogaz announced a technical default on Eurobonds in 2022 and 2026. However, at the same time, the company reached an agreement to restructure its bonds in 2024..

A group of creditors presented their own " Lenders hold bonds maturing in 2022 and 2026, as well as bonds with original maturities in 2024.

While the group's opposition may delay the recovery from the default, creditors have not begun the process of speeding up repayments or seizing assets..

Naftogaz sent a request for comment to Lazard Freres SAS, which the company hired to help with debt restructuring. A spokesman for Lazard declined to comment..

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Recall that in October last year it became known that the London-based hedge fund VR Capital is resisting an attempt by Naftogaz to restructure its debt. The company tried to defer repayment by two years.