Is Akhmetov's energy business on the brink of bankruptcy?

Rinat Akhmetov

Rinat Akhmetov

Akhmetov's energy business is on the brink of bankruptcy. This assumption was made by MP Oleksiy Mushak in an interview with the publication "Vysoky Zamok." The MP's assumption is based on the fact that DTEK management has postponed loan repayments until 2019. This move by Akhmetov's top managers indicates the de facto bankruptcy of Akhmetov's energy business.

 

Mushak explained that DTEK is the largest player in the energy market and was slated to repay approximately $200 million in loans this year. Since Akhmetov's company proposed deferring these loan repayments until 2019, this points to one thing: de facto bankruptcy. DTEK has assets, but lacks the working capital to pay the $200 million.

 

The MP explained that one of the reasons for the bankruptcy was that Akhmetov wanted to use the state budget to give away the electricity generated by his enterprises in separatist-controlled territory for free, but the authorities prevented this.

 

It was previously reported that the international ratings agency Fitch Ratings downgraded the long-term foreign and local currency issuer default ratings of Ukrainian energy holding DTEK from "CCC" to "C." The "C" rating signifies "imminent default." Fitch cited DTEK's weak liquidity as the reason for its decision.

 

 

 

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