Swiss trading company Nibulon SA is pursuing legal action to recover a $17,5 million debt from Ukrainian PJSC Rise Company for unfulfilled contractual obligations to supply corn in 2010.
Nibulon SA reportedly signed contracts with Raize for 158 tons of corn from April to July 2010. The deliveries were never made. The holding company confirmed that several feed supply contracts were signed between Raize and Nibulon SA in 2010.
"Proper contract execution was hampered by the introduction of grain export quotas by Ukraine. We emphasize: this refers to the period before Ukrlandfarming acquired Rise," the agricultural holding reported.
Nibulon SA then filed a claim with the Grain and Feed Trade Association (GAFTA) Arbitration Court. In May 2014, a final decision was made to recover $17,536 million from Rise Company PJSC in favor of Nibulon SA.
Ukrlandfarming, in turn, filed an appeal to the High Court of Justice of England and Wales. A final decision on this case has not yet been made.
As a reminder, PJSC "Company "Rayz" was founded in 1992. The company's main facilities and infrastructure are located in the Poltava and Sumy regions. Among other things, it owns several grain elevators and a sugar refinery. The agricultural holding's land bank amounts to almost 180 hectares, of which approximately 50 hectares were acquired over the past two years. In 2011, one of the largest agricultural holdings in Ukraine, "Ukrlandfarming," controlled by businessman Oleh Bakhmatyuk, acquired a 99,4618% stake in PJSC "Company "Rayz."
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