The mining company Ferrexpo has settled a financial dispute between PrJSC "Poltava Mining and Processing Plant" (PGOK, Ferrexpo Poltava Mining, Gorishniye Plavnye, Poltava region) with one of the service providers, LLC "Oxygen" (Poltava), in order to avoid litigation proceedings.
According to the company's press release, the amount of debt claimed by Oxygen LLC under the supply agreement is UAH 2.2 million (about $58 thousand).
Ferrexpo was informed that the court had scheduled a preparatory meeting of the Economic Court of the Poltava Region for March 12, 2024, at which a decision would be made to begin the procedure for protecting YuGOK's creditors.
"Having learned of the consideration, the Ferrexpo board took steps to resolve debt. Considering the restrictions on the operation of PGOK's bank accounts in Ukraine and the nature of payments made to repay the debt, YUGOK now cannot guarantee that the funds will be received on time, and for this reason, YUGOK is also simultaneously seeking agreement on an extension of payment terms," the press stated. -release.
At the same time, it is clarified that YUGOK received notification of a court order, issued at the request of the prosecutor, to freeze the company’s bank accounts. This action relates to an ongoing investigation in Ukraine, launched in November 2022 by the National Police of Ukraine, into alleged illegal mining (crushed stone), details of which were disclosed in the group's 2023 interim results and 2022 annual report.
"Ferrexpo is working closely with its legal counsel and other advisors to review and resolve the situation. The company will make additional announcements as necessary. Ferrexpo's operations remain unchanged at this time," the statement summarizes.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of the shares of PrJSC "Poltava GOK", 100% share of LLC "Eristovsky GOK" and 99.9% - LLC "Bilanovsky GOK".
