On September 24, Milkiland Group informed that it failed timely to fulfil some conditions of the Loan Facility Agreement with a syndicate of international banks.
The Group has started negotiations to sign a Loan Restructuring Agreement with the banks representing the syndicate.
The Group’s team is now reviewing its financial position and business plans in order to develop and offer the best restructuring options in the currenteconomic and political environment in Ukraine.
Comment by Milkiland N.V. CEO Anatoly Yurkevych:
“Recent economic and political developments in Ukraine, including the conflict with the Russian Federation and the following ban of Ukrainian dairy export there, have impaired our ability to fully meet certain syndicated loan agreement obligations.
Our team is working to support the Group’s liquidity and get back on track soon.
In particular, we’re seekingto capitalise on the Group’s cost advantage in the world market after Ukrainian hryvnia depreciation, participating in dairy import substitution in Russia, focusing on the promotion of ourdairyproducts in the EU, as well as actively seeking for a new markets to enter.
These efforts, as I believe, will create a background for restoration of growth of the Group’s top-line in the fourth quarter 2014 and in the beginning of 2015”.