Ferrexpo PLC has released an update regarding its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM). The update addresses the press speculation about an application from a supplier and related party to FPM, LLC PCC "Kysen," relating to potential creditor protection proceedings against FPM. The amount of debt claimed by Kysen under the supply agreement is UAH2.2 million (approximately US$58,000). The Commercial Court in Poltava Oblast has scheduled a preparatory court hearing to decide whether to commence creditor protection proceedings of FPM on 12 March 2024.
The Board of Ferrexpo has taken steps to settle the debt, but due to restrictions with the operation of FPM's bank accounts in Ukraine, the company is not able to provide assurance that funds will be received in a timely manner. FPM is seeking to agree on an extension of payment terms in parallel. Additionally, FPM has received notification in Ukraine of a court order to freeze its bank accounts, linked to an ongoing investigation concerning the alleged illegal extraction of minerals.
Ferrexpo is working closely with its legal counsel and other advisers to address the situation. The company will make further announcements as appropriate. It's important to note that Ferrexpo's operations remain unaffected at this time. This announcement contains inside information, and the person responsible for the release of this announcement is Mark Gregory, Group Company Secretary.
For further information, individuals can contact Nick Bias at Ferrexpo or Jos Simson and Gareth Tredway at Tavistock. Ferrexpo PLC is a leading iron ore pellet producer with mining and processing operations in Ukraine.