Finance & Credit's US accounts frozen over Cargill lawsuit

Finance & Credit’s correspondent accounts at U.S. banks were frozen following a New York court ruling on a lawsuit brought by Cargill, Delo reported yesterday. The dispute began in February after Finance & Credit failed to repay a USD 44.4 mln loan to Cargill. Delo said the company owned Cargill a total of USD 48.9 mln as of the end of June, including penalties and interest arrears. Finance & Credit Bank’s Chairman of the Board Vladimir Hlyvniuk said yesterday in a press release that it is not disputing the claim and that negotiations were underway regarding the restructuring of its obligations. Cargill filed a lawsuit in New York against Finance & Credit on June 18. Finance & Credit Bank was Ukraine’s #14 largest bank by assets as of April 1, according to the National Bank of Ukraine. Andrii Parkhomenko: We do not expect Cargill’s lawsuit to substantially impact quotations of Finance & Credit’s Eurobonds, as we believe associated risks are already priced in.