Ferrexpo did not provide sureties for Zhevago bank refinancing
2 January 2020
Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) did not provide any sureties for the refinancing obligations of
Finance & Credit (F&C) bank, according to a Dec. 27 message from an
investor relations representative of the company.
Recall, on Dec. 26, the National Bank of Ukraine (NBU)
reported having obtained an enforcement order to recover UAH
1.539 bln (USD 66 mln) from Kostyantyn Zhevago, Ferrexpo’s
majority owner and former CEO. In 2015, Zhevago committed to repay NBU
refinancing loans to F&C bank, which he controlled until the bank was
declared insolvent in September 2015.
In its Dec. 26 press release, the NBU said it expects
the amount owed to be partially enforced against Zhevago’s personal funds, as
well as against the assets of some of the companies controlled by Zhevago that
were surety providers.
Dmytro Khoroshun: It is positive
that Ferrexpo is not under risk of losing even more money in relation to its
former related party, the F&C bank.
Recall, after F&C bank was declared insolvent, Ferrexpo lost USD 174 mln that it had
on deposit at the bank.
