In January-June 2016, PJSC "Kreativ" posted a net loss of UAH 1,98 billion, 2,3 times less than in the same period in 2015, according to the company's report in the National Securities and Stock Market Disclosure System, Interfax-Ukraine reports. Net income decreased by 9,1 times to UAH 134,6 million, while operating losses decreased by 4,2 times to UAH 990,83 million. Gross profit fell by half to UAH 55,69 million. Two-thirds of the employees were laid off. On June 6, 2016, the Kyiv Commercial Court initiated bankruptcy proceedings against PJSC "Kreativ." To understand how the new owners brought the second-largest oil and fat holding company to its knees, let's rewind some events and try to figure it out.
After the founder of Kreativ in July 2015 Stanislav Berezkin He resigned from the shareholder group, stating that 80% of the oil extraction business, as well as the production of fats, margarines, and spreads, had been transferred to other owners. A group of investors, initially anonymous, became the new owners of Ukraine's second-largest sunflower oil producer. Rysbek Toktomushev became the public face of Kreatyv. In an interview with Forbes Ukraine, he also mentioned the name of a financial investor and another owner—businessman Artur Granz. Few doubted that the new manager was merely a front man for Kreatyv, tasked with "underhanded" loans and the transfer of the company's highly liquid assets to the "right" people. Why was Rysbek Toktomushev chosen for this role? Financial scams require professionals, and this gentleman has extensive experience and skills: he knows how to pull off a good scam.
The battle for control of BTA Bank
The first high-profile scandal involving Rysbek Toktomushev involved a struggle for control of BTA Bank (Ukraine), which had been ongoing for several years between Kazakhstan and the former chairman of the board of directors, the disgraced Kazakh oligarch Mukhtar Ablyazov. On February 2, 2009, BTA Bank (Kazakhstan) was nationalized due to "gross violations of several banking regulations," and the bank's chairman was dismissed and placed on an international wanted list. Since then, a struggle has erupted between the now state-owned Kazakh BTA Bank and its former owner for control of the Ukrainian subsidiary.
Rysbek Toktomushev joined Ukraine's BTA Bank back in 2008, as the manager of Eurasia-Ukraine, a company also linked to several loan scandals. Toktomushev's Kazakh owner had no chance of winning the legal battle for property in Kazakhstan—reportedly, Nursultan Nazarbayev himself was against him—but he could have fought in other countries. And the loyal Rysbek, who chaired the supervisory board of Ukraine's BTA Bank from 2009 to the end of 2014, played a significant role in these proceedings.
Rysbek Toktomushev's scheme was to terminate some of the deals that allowed the Kazakh BTA Bank to control the Ukrainian bank. While in March 2009, the Kazakh bank owned 49,9883% of the Ukrainian BTA Bank, after the unpaid share purchase and sale transactions concluded back in 2008 were declared null and void, the Kazakhs' stake in the Ukrainian subsidiary fell to 9,9975%. A "wonderful" trick, isn't it? Removing a significant stake in a Ukrainian subsidiary from the parent bank's control. The Kazakh bank's response was a denial and the start of a legal battle that lasted several years and ended in a de facto victory for the parent bank, which received 99% of the shares. This is likely why, in 2014, the top managers of the Ukrainian BTA Bank, led by Rysbek Toktomushev, resigned en masse.
Old Songs about the Main Thing: "Creativity" in Rysbek's Style
After leaving BTA Bank, Toktomushev & Co. founded Marka Capital, whose services include business reorganization, due diligence and valuation, debt restructuring, and commercial dispute resolution. The elegant language perfectly encapsulates the essence of their professional activities: skillfully "squeeze and drain," bankrupt, and rip off.
Those behind the purchase of Kreatyv found a useful and capable manager in Rysbek Toktomushev. From the very first months of owning Kreatyv, it was clear there was no interest in developing the business—he who knows how to destroy is incapable of creating. However, he handled the task of resolving debts so that the beneficial owners would not be overpaid with flying colors! In late February, the Cabinet of Ministers of Ukraine approved the sale by Ukrgasbank of the right to claim the Ellada oil extraction plant (Kirovohrad region), owned by the Kreatyv group, and Grain Terminal LLC (Kernel agricultural holding) became the new owner of the plant for $45,755 million. The sale of the group's only liquid asset was a decisive step toward resolving the debt issues and dotting the i's. It became clear who was behind the deal from the start and who benefited from Kreatyv's elimination from Ukraine's agricultural map. As for the debt obligations of the group of Ukrainian and international banks that initiated litigation with Kreatyv, Rysbek & SO are not accustomed to answering such questions, as they completed their "fruitful" work of scamming banks according to a preliminary order, and after that, the grass doesn't grow.
Toktomushev's previous experience fighting the Kazakh authorities for control of BTA Bank was not in vain. While the BTA Bank case relied on declaring the BTA Bank shares null and void, as the manager of Kreativ, the focus was on accusing the former owners, the Berezkins, of stealing collateral from private lending banks. Toktomushev didn't reinvent the wheel and instead pinned all the inconvenient debts on the former owners, presenting the situation in such a way that the buyer had no idea of the current state of the asset being purchased, was denied full access to it, and was unaware of Kreativ's financial and economic situation.
In addition to bank debts, dozens of lawsuits are currently pending in the courts of Kropyvnytskyi (Kirovohrad), alleging that the company owes farmers for previously delivered sunflower seeds under purchase and sale agreements, pledge agreements with subsequent price revisions, and storage agreements. The new owners have been engaged in sluggish correspondence with the farmers, not renouncing the debts but stalling for time. Why? Most likely, so they can transfer over 200 million rubles received in VAT refunds from the Berezkin family to offshore accounts. During this period, some collective farmers have taken matters into their own hands and filed lawsuits. The announcement of bankruptcy proceedings was undoubtedly a bolt from the blue for agricultural producers, as it means one thing: they will likely never see their money again, being at the bottom of the debt chain after the banks.
Afterword ...
What is Rysbek Toktomushev up to these days? Perhaps he's preparing to reap the "fruits" of his creative enterprise, bankrupting what was once the country's largest producer of sunflower oil and margarine, automatically shifting the burden onto actual farmers (if we're talking about sunflower seed processing), private borrowers (if we're talking about debts to private banks), and taxpayers (if we're talking about debts to state-owned banks). As the saying goes, "It's not me, it's not my business." This begs the question: is Mr. Toktomushev even a citizen of our country if he can so easily destroy Ukrainian businesses? And who is currently in the sights of this enterprising Kazakh, who masterfully manages to send businesses from the frying pan into the fire under the guise of restructuring and optimization?
Ruslan Yakushev
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