Agricultural holding “Mriya” in June lowered the forecast of EBITDA for the 2017/2018 financial year (June-July) by 11% to $32.9 million compared to the November forecast of last year.
Prior to the holding of the presentation, the revenue forecast for the period remained almost unchanged and amounted to $121,4 million
In 2017/2018 FY Mriya expects negative cash flow of $23.7 million
The main causes of the agricultural holding calls loss in 2016 due to adverse weather conditions during the crop period, increasing costs for equipment, rent, new technologies in connection with the arrival of a new team of agronomists and extension acreage to 5 million hectares in November 2016.
“Mriya” predicts that in July 2018, its need for working capital will be $62 million, $16 million more than projected in November 2016. Its management expects to cover the needs in working capital partially succeed due to the sale of the crop, savings in operating costs .
The decision of attracting funds to replenish working capital will be made in November 2017.
The holding expects to complete the process of debt restructuring until the first quarter of 2018.
By 2020 Mriya plans to expand the area under sugar beet up to 20 thousand ha, potatoes – up to 3 thousand hectares.
Agricultural holding “Mriya” is vertically integrated agro-industrial holding, was founded in 1992 by Ivan Huta. At present, land Bank is about 180 thousand hectares, located in Ternopil, Khmelnytsky, Ivano-Frankivsk, Chernivtsi, Lviv and Rivne regions. Grow wheat, sunflowers, potatoes, corn, soy, canola, barley, peas, buckwheat and sorghum. Elevator capacities of the holding is estimated at 600 thousand tons.
In August 2014, Mriya reported overdue payment of about $9 million of interest income and $120 million in debt on its obligations. The total debt in front of all financial creditors with regard to safeguards, provided a family-related Gut companies, at the time of defaulting of agricultural holdings was approximately $1.3 billion.
In early February of 2015, the operational control was transferred to creditors who have elected new leadership, and in September 2016, the committees of creditors and bond holders of the holding agreed on terms for restructuring the debt portfolio, which currently stands at about $1.1 billion.
For fraud initiated a number of criminal cases. Son of I. Guta – Nicholas – wanted by Interpol.