Ferrexpo wins another asset ownership court review

The ownership structure of Ferrexpo Poltava Mining
(FPM), the main asset of the iron ore miner Ferrexpo (FXPO LN, FXPOLN), was
reviewed by the Poltava Regional Economic Court on Dec. 12, the court reported
in a decision published on Dec. 21.

In detail, the court rejected the claims of two U.K.
firms, Calefort Development Limited and Gilson Investments Limited, because it
found that their claims or basis for their claims within this case were
previously reviewed and turned down in several other related cases during
2009-2015.

In particular, the claim to rule invalid FPM’s share
offerings and numerous other corporate actions that took place after Nov. 20,
2002 was based on the claimants alleging their owning of 18.73% of FPM.
However, the regional court determined that other courts had established by
2015 that a sale and purchase agreement dated Nov. 11, 2002, which relieved the
claimants of their 18.73% stake, was, in fact, valid. Therefore, Calefort and
Gilson cannot argue in this latest case that they were shareholders as of Nov.
20, 2002.

The court decision also mentioned that the claimants
did not attend the Dec. 12 hearing, and that their representatives in Ukraine
were located in Donetsk, a city in the temporarily occupied territories.

Dmytro Khoroshun: This court review was likely a cleanup of old untied ends by Ferrexpo.
Unless appealed, which seems unlikely, this case will soon be closed for good.
We will continue to monitor the situation and so far retain our neutral view on
Ferrexpo Eurobonds.