REG - Ferrexpo plc - Update regarding Ukrainian subsidiary

FerrexpoAnnouncement

11/03/2024 07:00

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RNS Number : 3123G  Ferrexpo PLC  11 March 2024

 

11 March 2024

Ferrexpo plc

("Ferrexpo" or the "Group")

 

Update regarding Ukrainian subsidiary

 

Ferrexpo plc (LSE: FXPO), notes the press speculation concerning an
application from LLC PCC "Kysen" ("Kysen"), a supplier and related party to
Ferrexpo Poltava Mining ("FPM"), relating to the potential opening of creditor
protection proceedings against FPM, which was accepted by the Commercial Court
in Poltava Oblast. The amount of debt claimed by Kysen under the supply
agreement is

UAH2.2 million (approximately US$58,000). The Company has been informed that
the court has scheduled a preparatory court hearing to decide whether to
commence creditor protection proceedings of FPM on 12 March 2024.

Having become aware of proceedings the Board of Ferrexpo has taken steps to
settle the debt. Given restrictions with the operation of FPM's bank accounts
in Ukraine, and the nature of the payment that is being made to settle the
debt, FPM is not able to provide assurance now that funds will be received in
a timely manner and for that reason FPM is, in parallel, also seeking to agree
an extension of payment terms.

FPM has received notification in Ukraine of a court order issued at the
request of the prosecutor in Ukraine to freeze the bank accounts belonging to
FPM. This action is linked to the ongoing investigation in Ukraine commenced
in November 2022 by the National Police of Ukraine concerning the alleged
illegal extraction of minerals ("rubble"), details of which were disclosed in
the Group's 2023 Interim Results and 2022 Annual Report.

Ferrexpo is working closely with its legal counsel and other advisers to
consider and address the situation. The Company will make further
announcements as appropriate. Ferrexpo's operations remain unaffected at this
time.

This announcement contains inside information. The person responsible for the
release of this announcement is Mark Gregory, Group Company Secretary.

 

For further information please contact:

 Ferrexpo:
 Nick Bias       n.bias@ferrexpo.ch        +44 (0)20 7389 8305
                                           +44 (0)7733 177 831

 Tavistock:
 Jos Simson      ferrexpo@tavistock.co.uk  +44 (0)20 7920 3150
 Gareth Tredway                            +44 (0)7785 974 264

 

About Ferrexpo:

Ferrexpo is a Swiss headquartered iron ore company, with assets in Ukraine,
and a premium listing on the London Stock Exchange, and part of the FTSE 250
index (ticker FXPO). The Group produces high-grade iron ore pellets, which are
a premium product for the global steel industry and enable reduced carbon
emissions and increased productivity for steelmakers when the Group's iron ore
pellets are converted into steel, compared to more commonly traded forms of
iron ore. Ferrexpo's operations have been supplying the global steel industry
for over 50 years. Before Russia's invasion of Ukraine in February 2022, the
Group was the world's third largest exporter of pellets to the global steel
industry. The Group has a customer base comprising of premium steel mills
around the world. For further information, please visit www.ferrexpo.com
(http://www.ferrexpo.com/) .

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