On August 17, 2015, Milkiland N.V. entered into the Professional Services Agreement with “Deloitte & Touche” Ltd., a member firm of Deloitte Touche Tohmatsu Limited. The Agreement envisages the provision by “Deloitte & Touche” Ltd. of Company’s Business Review and review of short-term liquidity forecast.
These services will be performed in order to enable Milkiland N.V.to consider, negotiate and agree with its main creditors, namely, UniCredit Bank Austria AG and AO Raiffeisenbank, a scheme of the restructuring of debt under Syndicated Loan Facility Agreement provided by these banks.
Comment by Milkiland N.V. CFO Oleksandr Androshchuk:
“Our team put a lot of efforts on reviewing the business model and developing business plans of Milkiland Group in order to offset the influence of the difficult macroeconomic environment and restricted access to the Group’s traditional export market in Russia. According to our estimates, we expected a stabilization of the Group’s financial standing during 2015 and restoration of the growth of our business in 2016.
Without any doubt, all of these finding were presented and discussed with our creditors in details.
We believe that involvement of experienced Deloitte team will give an independent view on the important aspects of further development of Milkiland’s business, including high-level market analyses, assessment of historical financial position and mid-term financial projections.
We also expect that the Deliverables prepared by Deloitte will establish a necessary background for negotiatingand agreeingconsensual restructuring of the Syndicated Loan Facility Agreement.
The preliminary Deloitte Report should be submitted for our consideration in 8 weeks term”.