ACP, Innovatus start bankruptcy proceedings for Odesa grain terminal Olimpex Coupe International

KYIV. Feb 6 (Interfax-Ukraine) – Argentem Creek Partners (ACP) and Innovatus Capital Partners (Innovatus) have announced the commencement of bankruptcy proceedings for Olimpex Coupe International (Lviv, part of GNT Group), which operates the Olimpex Coupe International grain terminal in the Odesa Commercial Sea Port.

As reported on the ACP website, the bankruptcy of the GNT Group subsidiary will be carried out as part of the steps taken by Madison Pacific Trust Limited in its capacity as fiduciary to secure the loan from ACP and Innovatus.

"The decision to file for bankruptcy follows GNT’s failure to repay its lenders, material shortcomings of governance and transparency, the dissipation of assets since enforcement proceedings began, and investigations into the still unexplained disposals of nearly 400,000 tonnes of grain and sunflower seeds, worth approximately $130 million," the report notes.

"A bankruptcy manager will be appointed and tasked with ensuring there are no disruptions to the terminal’s operations during the proceedings. This comprehensive reorganization is the best way to protect employees’ jobs and the operational running of the terminal, ensuring that it plays an important role in the Black Sea Grain Initiative. The success of the grain corridor is crucial for the people of Ukraine and international food security more broadly," John Patton, Portfolio Manager, EMEA & Asia at ACP, said.

ACP also cites Innovatus Managing Director Ana Firmato, who emphasizes the importance of grain exports from the Odesa port for global food security, while, according to her, the company remains unwavering in its commitment to invest in Ukraine and support its economy.

"Bankruptcy proceedings for this particular entity are a necessary legal step to restructure the group towards profitability, transparency, tax compliance and proper corporate governance," Ana Firmato said.

As reported, on January 16, 2023, the High Court of England ruled to freeze the assets of Serhiy Hroza and Volodymyr Naumenko, the owners of GNT Group, with sanctions imposed on a total of $118 million. The assets were frozen as part of a lawsuit on behalf of GNT Group’s creditors – American investment companies Innovatus and ACP, accusing the group of allegedly illegal actions in relation to pledged grain stored at the grain terminal.