Ferrexpo asset ownership to be reviewed in court again

The ownership structure of Ferrexpo Poltava Mining
(FPM), the main asset of the iron ore miner Ferrexpo (FXPO LN, FXPOLN), will be
reviewed by the Poltava Regional Economic Court on Dec. 12, the court reported
in a Nov. 27 decision published on Dec. 1. In detail, two U.K. claimants,
Calefort Development Limited and Gilson Investments Limited, will be able to
argue before the court that a share issuance resolution of a shareholder
meeting that took place on Nov. 20, 2002 should be declared invalid.

The court case to hear the argument had been suspended
since September 2007. The claimants are seeking that CJSC FCI, which once
served as FPM’s registrar, as well as Ukraine’s National Securities and Stock
Market Commission, rule invalid FPM’s share offerings and numerous other
corporate actions that took place after Nov. 20, 2002.

Dmytro Khoroshun: This court case is a part of a decade-long fight between FPM’s current
owners (Ferrexpo, and ultimately, Kostyantyn Zhevago) and the VS Energy group
of Russian businessman Aleksandr Babakov. Ultimately, about 40% of Ferrexpo’s
corporate rights in FPM are at risk. We will monitor the situation and so far
retain our neutral view on Ferrexpo Eurobonds.