Court imposes restrictions on alienation of 49.5% of shares of Ukrainian subsidiaries of Ferrexpo

A court has imposed restrictions on the alienation of 49.5% of the shares of Ukrainian subsidiaries of the Ferrexpo Group, the majority shareholder of which is businessman Kostiantyn Zhevaho.

This is stated in the message of the company, Ukrainian News Agency reports.

“Ferrexpo plc (LSE: FXPO), a premium iron ore pellet producer and supplier to the global steel industry, announces that it has been notified of a court order in the Ukrainian Register of Court Decisions, that imposes restrictions on certain corporate rights in all of the Group's Ukrainian subsidiaries. These restrictions are imposed on 49.5% of the shares in the Group's Ukrainian subsidiaries except for TIS-Ruda LLC and Nova Logistics LLC, where the collective restriction is 24.7% and 25.2% respectively (the "Restrictions"). The Restrictions do not affect ownership of the shares but prohibit their transfer and restrict certain rights attached to the shares, including the right to vote. The Group confirms that it has no intention, and never has had any intention of transferring shares in its subsidiaries,” it was said.

According to the report, these restrictions are part of an ongoing series of legal proceedings against Kostiantyn Zhevaho relating to the Finance and Credit Bank and are not related to the Ferrexpo Group.

As Ukrainian News Agency earlier reported, in January, the Court of Appeal confirmed the guarantee obligations for UAH 4.7 billion of the Poltava Mining and Processing Plant (Horishni Plavni, Poltava Region), which is part of the Ferrexpo Group of businessman Kostiantyn Zhevaho, for loans from the Finance and Credit Bank.

The Bila Tserkva City Council bought back the Bila Tserkva thermal power plant, which the NBU took from Zhevaho for debts, for UAH 298.6 million.

The National Bank became the owner of Bila Tserkva TPP thanks to the decision of the Economic Court of the Kyiv Region.

In particular, in May 2023, the court satisfied the NBU's claim for foreclosure on the single property complex of Bila Tserkva TPP pledged to the National Bank.

This company was a property guarantor for the obligations of the Finance and Credit Bank to the NBU for refinancing loans.

On September 17, 2015, the National Bank decided to classify the Finance and Credit Bank as insolvent.

At the time of this decision, the shareholder of the bank was Zhevaho, who indirectly owned 97.67% of the shares.