Ukraine reaches preliminary deal with bondholder group on $20 bln debt rework

* Ukraine reaches preliminary deal with bondholder group on $20 bln debt rework Deal to enable $11.4 bln in cash flow relief over next 3 years * Agreement frees money for defence, social spending - Ukraine PM * Government says IMF, official lenders have signed off on deal By Karin Strohecker and Libby George LONDON, - Ukraine said on Monday it had reached an agreement in principle with a group of creditors to restructure $20 billion of international bonds, a key step bringing the war-torn country closer to an unprecedented debt rework. "After months of engagement and hard work with our private bondholders, the IMF and our bilateral partners, we have reached an agreement in principle with the Ad Hoc Creditor Committee on the comprehensive restructuring of our public external debt," Finance Minister Serhiy Marchenko said in a statement. The proposal would see a 37% nominal haircut on Ukraine's outstanding international bonds and result in a cash flow relief of $11.4 billion over the next three years - the duration of the country's programme with the International Monetary Fund set to expire in 2027, according to government statements. Ukraine's Prime Minister, Denys Shmyhal, said in a message on the Telegram app that the deal would free up resources for urgent needs, including defence, social protection and recovery.