Subsidiaries of group of companies “Milkiland” – production facility Ostrowia, Milkiland EU and trading company UA Trade (Poland) reached an agreement with the Polish Pekao Bank on the restructuring of the revolving line of credit for PLN7,6 million (EUR1,8 million).
According to the report of Milkiland on the website of the Warsaw stock exchange (WSE), a corresponding agreement was signed on 31 July 2017.
The terms of restructuring suggest that the principal debt will be repaid by monthly payments. The last payment is 30 June 2018. Borrowers pledged to sell up to 28 February 2018 non-core assets in the amount of not less than PLN0,509 million (EUR 0.12 million) and the proceeds sent to debt repayment.
In turn, the Bank agreed to defer until June 30, 2018 payments companies accrued debt interest income and penalties for delay in repaying the debt only PLN0,601 million (EUR0,143 million ). In addition, the Bank promises not to initiate forced collection of debts during the term of the agreement.
As reported, the Russian Bank “the Renaissance” on March 28 filed a petition for bankruptcy to the Arbitration court of Moscow against OJSC “Ostankino dairy plant” (Moscow). The petition for bankruptcy is commenced due to the inability of enterprises to repay Bank 309,2 million Russian rubles (EUR5,13 million).
In January 2017, “Milkiland” and Ostankino dairy plant received a notification of the payment guarantee agreement of $68 million, signed Ostankino dairy plant as a guarantor with Raiffeisen Bank International AG as agent in connection with the credit agreement Milkiland with UniCredit Bank Austria AG and JSC Raiffeisenbank (Russia) from December 2011. The holding clarified that the aggregate amount of debt of Milkiland under the loan agreement is $68,42 million and EUR0,19 million
In 2016, the Russian savings Bank has informed on intention to bankrupt the Ostankino dairy plant. Currently, the Moscow Arbitration court is the petition of the savings Bank “on protection of property interests” to the plant. According to the court, the amount of the claim exceeds 368 million.
In addition, the group maintains a legal battle with Bank Pekao S. A. and Pekao leasing Pekao bank S. A. (both from Poland) who are trying to recover from her PLN8. 5 million (EUR2,1 million) under the credit agreement with Milkiland EU (Poland), guaranteed Milkiland N. V.
The group’s Milkiland has previously announced its intention to complete in 2017, all negotiations with banks on debt restructuring.
Group of companies “Milkiland” – one of the largest producers of dairy products in the Ukrainian market. Its production capacity in Ukraine, Russia, Poland can be processed 1.33 million tons of milk per year. In Ukraine the total number of cattle is 4.9 thousand heads, including dairy herd – 1,77 thousand heads. In Ukraine the company also handles 17 thousand hectares of land.
In Ukraine the group’s Milkiland owns 10 plants producing wide range of dairy products, including cheese, fresh dairy products and butter, which are sold under the trademarks “Dobryana” and “Kolyada”.
In the Russian Federation “Milkiland” produces dairy products under the brand “Ostankino” at OJSC “Ostankino dairy combine”.
In summer 2012, the Milkiland acquired Mazowiecki cheese-making plant Ostrowia in Poland, at the beginning of 2013 JSC “Syrodel” in Russia.
“Milkiland” in 2016, a net loss in the amount of EUR38,906 million, which is 1.9 times less than in 2015. Its revenue for the year fell 23.3% to EUR146,76 million.