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Poltava Mining receives claim of UAH 4.7 bln as guarantor for loans from liquidated bank F&C

KYIV. March 17 (Interfax-Ukraine) – PJSC Poltava Mining has received a claim in the amount of UAH 4.727 billion on contested sureties from Kostiantyn Zhevaho’s Finance and Credit Bank (F&C).

According to Ferrexpo’s annual report, Poltava Mining received the claim on December 7, 2022.

At the same time, Bank F&C is still going through the liquidation process after having been declared insolvent by the National Bank of Ukraine and put under temporary administration on 18 September 2015.

“Following the loss of funds held at Bank F&C of approximately $177 million, the group, through its major subsidiaries in Ukraine, initiated various court proceedings with the aim to maximise the group’s recovery in the liquidation process of Bank F&C,” the group said in the document.

According to the report, the counterparty in this claim alleges that it acquired rights under certain loan agreements originally concluded between the Bank F&C and various borrowers, some of which are associated entities of the group’s controlling shareholder, by entering into the assignment agreement with 71 the State Guarantee Fund on 6 November 2020. The counterparty further claims that Ferrexpo Poltava Mining provided sureties to Bank F&C to ensure the performance of obligations under these loan agreements.

“It is Poltava Mining’s position that no such sureties have been signed,” the group said in the report.

At the same time, Poltava Mining believes that it has compelling arguments to defend its position in the court and, as a consequence, no associated liabilities have been recognised in relation to this claim.

The date of the court hearing is currently unknown, according to the company.