Ferrexpo is seeking a way out after the bankruptcy of Zhevago Bank.

ferrexpoFerrexpo, the mining company, intends to hold an extraordinary board meeting to determine its future strategy. This is prompted, in particular, by the insolvency of Finance and Credit Bank, the company's primary clearing bank. Expected measures include a possible dividend reduction, the sale of a stake in the company, cost reductions, and the hiring of outside financial experts.

Essentially, the company currently has $653 million in net debt, and it's unclear whether it will be able to repay the money from the bank of Ukrainian businessman and the company's main shareholder, Konstantin Zhevago, which held $174 million of the $280 million in available funds. It's also worth noting that Ferrexpo shares have already plummeted by a third following the bankruptcy announcement of Finance and Credit.

As a reminder, the bank was previously ranked 10th among Ukrainian banks by authorized capital, at UAH 38,88 billion. However, its fate is currently unknown. On September 17, the bank was declared insolvent, and the NBU appointed a temporary administration.

 

 

SKELET-info

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