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Milkiland creditors file claims on Ukraine assets to collect debt

Milkiland creditors file claims on Ukraine assets to collect debt

9 October 2018

The Kyiv Economic Court began on Oct. 5 legal
proceedings at the request of the creditors of Milkiland (MLK PW), who are
demanding foreclosure on PE Ros, one of Milkiland’s Ukrainian subsidiaries, the
company reported on Oct. 8. Foreclosure claims have been filed in other courts
against five other Milkiland subsidiaries, whose property was secured by a
syndicated loan, the company said. Milkiland’s total debt related to the
mentioned claims is the equivalent of EUR 69.4 mln, Milkiland clarified.

 

Commenting on the issue, Milkiland said that it “is
going to participate in the respective courts hearings and has been continuing
the negotiations with the lenders in order to reach a mutually accepted solution.”
Separately, Milkiland IR officer Sergey Trifonov noted that the company has
nine operating milk processing facilities in Ukraine. Therefore, it has the
ability to reallocate production to facilities whose property was not secured
to syndicate providers.

 

Alexander Paraschiy: The company has been in negotiations with syndicate loan providers for
more than four years after it initiated debt restructuring in September 2014.
The recent information suggests the parties have failed to agree to any restructuring,
so the company is preparing for its Plan B. This promises few positives for
both the company and its creditors, and confirms high risk for Milkiland’s
future.

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