KIEV, Sept. 28 – The Industrial Union of Donbass (IUD) Corporation has failed to repay loan participation notes worth $150 million by a deadline set for September 23, 2010, market operators told Interfax-Ukraine.

Director of Concorde Capital's consulting department Andriy Herus said that this had not been a surprise for the market.

"Taking into account the group's difficult financial situation and talks on the restructuring of the overall sum of the IUD's debts (LPN, bank debts) over the past year, the possibility of the timely repayment on the securities was very low. Note holders started to hold restructuring talks even prior to the formal repayment date," he said.