Reinwardtstraat 232, 1093HP Amsterdam
+(7495) 648-6429
+(38044) 369-5200

Office 303, 9 Boryspilska Street, 02099, P. O. Box 150, Kyiv, Ukraine.
News/Media Centre

Raiffeisen Bank International AG has been initiating the court hearings against the Group’s Ukrainian subsidiaries

08.10.2018

Press-release

On 5 October 2018, Economic Court of the city of Kyiv opened the legal proceedings against PE “Ros”, the Ukrainian subsidiary of the Milkiland Group, according to the claim from Raiffeisen Bank International AG, acting as Security Agent under the Facilities Agreement with a Syndicate of international banks formed by Raiffeisen Bank International AG, UniCredit Bank Austria AG and ZAO Raiffeisen Bank (all together “the Lenders”), dated 12 September 2012 (hereinafter “the Facilities agreement”).

This document claims the recovery of the real estate and movable property of PE “Ros”, mortgaged to the Lenders according to the Mortgage agreement dated 28 August 2012, signed to ensure the fulfillment the obligations of the Company to the Lenders under the Facilities agreement.

Milkiland also received from Raiffeisen Bank International AG another 12 court claims of the same nature against other 5 Ukrainian subsidiaries of the Group, which were addressed to the Economic Courts related to the destination of the defendants.

The full text of the respective current report of Milkiland could be found by the following link: https://mlkfoods.tonic-adv.com/upload/iblock/64c/Current-Report-7-SyndicatedLoan-Enforcement-Ukr-Segment-08Oct2018.pdf

Comment by Sergey Trifonov, IRO, Milkiland N.V.:

“Court hearings against the Ukrainian subsidiaries of Milkiland Group could, in the nearest future, be applied to 5 out of 9 operating milk processing facilities of the Group in Ukraine.

The management of the Group is going to participate in the court hearings and has continuing the negotiations with the Lenders in order to reach the mutually accepted solution of the settlement of the Group’s indebtedness to them.

In case of any difficulties on this way, the Group has a possibility of manoeuvre of production capacities in the Ukrainian segment of the business by increase of capacity utilisation of the production facilities, which property was not secured to the Syndicate”.