Ukrainian agricultural firm Agroton said it lacked cash to pay an upcoming coupon on a $50 mln bond after most of its funds were frozen in a Bank of Cyprus account as part of a an international bailout package and it said it may try to amend the terms of the bond.
Agroton said that out of about $4.5 mln it had had in the bank at the end of March, $1.6 mln had been converted into equity, $1.0 mln had been written off and $1.9 mln remained frozen.
The Warsaw-listed company did not say when the coupon payment was due but last year it made the payment on July 16.
Agroton said it was unable to raise cash from sales.
Before its financial meltdown, Cyprus was an attractive banking destination for companies from the ex-Soviet Union due to its low tax regime, while both Bank of Cyprus and bankrupt Popular Laiki have substantial subsidiaries in both Russia and Ukraine. Cyprus has treaties with more than four dozen countries including Ukraine to avoid double taxation.
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