The court’s sanction of DTEK's latest scheme includes novel references to its outstanding bank debt and helpfully rules on the controversial 'domicile test'.

The DTEK group recently implemented a long-term restructuring of its unsecured New York law-governed notes consisting of its US$750 million 7.875% senior notes due 2018, as well as its US$160 million 10.375% senior notes due 2018 (the Notes and holders of the Notes, the Noteholders) using an English law scheme of arrangement (the ‘long term restructuring’ or LTR Scheme). DTEK subsequently entered into an override agreement with a vast majority of its bank lenders, signaling the completion of a holistic restructuring. Despite the fact the bond deal preceded the bank deal, and creditors had different objectives and sensitivities, a number of unique features were used which allowed DTEK to successfully complete the restructuring to the satisfaction of both creditor groups.