The Milkiland, a dairy group with assets in Ukraine, Russia and Poland and fulfilled the conditions of debt restructuring to “credit Agricole Bank” (Kiev).

According to a press release, “Milkiland”, the company completed the sale transaction of PJSC “Iskra” and “Success-Maine”, the control of which was carried out by LLC “Milkiland-agro”

Restructuring agreement on $14,456 million between “credit Agricole Bank” and DP “Milkiland-Ukraine”, LLC “Nadiya”, LLC “the Success Man” and PJSC “Iskra” signed in July 2016.

In accordance with the restructuring agreement, the maturity of loans was extended to 30 June 2019, reduced the interest rate. In addition, the document included the demand for the sale of the above-mentioned agricultural companies of the group no later than March 30, 2017 with the aim of ensuring the repayment of “credit Agricole Bank” part of the principal amount of the debt in the amount of $4.5 million.

“As a result of sale of PJSC “Iskra” and “Success-Maine” customers-third parties a sum of $4,854 million was repaid to the lender. An additional $0,511 million was saved due to lower interest rates and also aimed at repayment of debt”, – noted in a press release.

The outstanding amount of the principal amount of the debt to the Bank as of March 1, 2017, totaled $9.1 million.

According to the chief Executive Director of “Milkiland agro” Natalia Melenevskii, at the present time, the company will focus on business development of its key operating units of ALLC “Nadiya”, managing modern dairy farm “Krasnosel’skaya”.

“We are pleased to comply with the terms of the restructuring agreement with PJSC “credit Agricole Bank”, one of the largest creditors “Milkiland” with a share of 9% in total loan portfolio of the Group as of March 1, 2017″, – commented on the deal the group Finance Director Oleksandr Androshchuk.

The management of Milkiland believes that the implementation of debt an important element of financial stabilisation of the business after several shocks, he encountered in 2014-2016 related to macroeconomic instability and the loss of traditional export markets.

As reported, the Milkiland also continued negotiations on debt restructuring before the syndicate of banks composed of UniCredit Bank Austria AG (Austria) and JSC Raiffeisenbank (Russia) for $58.6 per ml.

Group of companies “Milkiland” – one of the five largest producers of dairy products in the markets of Ukraine and Russia.

In Ukraine, the group 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 plant” (Moscow).

In summer 2012, the Milkiland acquired Mazowiecki cheese-making plant Ostrowia in Poland, at the beginning of 2013 JSC “Syrodel” in Russia.

“Milkiland” in January-September 2016 was a net loss of EUR24,81млн, which is 35% less than in the same period of 2015. Its revenue decreased by 23% to EUR112 94 million against the devaluation of the hryvnia and the Russian ruble.