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LONDON - Ferrexpo PLC (LSE:LON:FXPO), a global producer of iron ore pellets, has disclosed that its Ukrainian subsidiary, Ferrexpo Poltava Mining ("FPM"), is facing a bankruptcy application in Ukraine. The application, submitted by LLC "Financial Company" "Maxi Capital Group" ("Maxi Capital"), was accepted for consideration by the Commercial Court of Poltava region on May 14, 2025.
Maxi Capital filed the bankruptcy application on May 9, 2025, due to a disputed sureties claim against FPM, relating to alleged guarantees made by FPM for obligations of Bank Finance & Credit under certain loan agreements. The bank was declared insolvent in 2015 and is currently in liquidation.
The court has scheduled a preparatory hearing for May 27, 2025, to review the application. The case is further complicated by ongoing proceedings at the Supreme Court of Ukraine, where FPM is contesting the sureties claim. The Supreme Court, which has yet to schedule a date for the next hearing, has suspended possible enforcement of the claim until a final decision is reached.
Ferrexpo has made a full provision of UAH4,727 million (approximately US$112.5 million as of December 31, 2024) in its financial accounts for both FY23 and FY24, reflecting the claim’s magnitude and the uncertainties of the Ukrainian judicial system.
The company has been defending its position vigorously and will continue to do so before the Supreme Court. This announcement is considered inside information, and further updates are to be provided as the situation develops. The ongoing legal proceedings and potential bankruptcy of FPM represent a significant challenge for Ferrexpo, which has operations in one of the world’s largest iron ore resource bases.
Investors and stakeholders are closely monitoring the developments, as the outcome could have material implications for Ferrexpo’s operations in Ukraine. The company’s management maintains that the claim is without merit. This information is based on a press release statement from Ferrexpo.
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