Nikopol Ferroalloy Plant Recovering 22 Million from Privatbank Previously Paid to the NBU

On December 17, the Kyiv business court partially satisfied JSC Nikopol Ferroalloy Plant’s claim against PrivatBank referred to case No.910/13013/19 and ruled in favour of the plaintiff—the recovery to be paid by the defendant is ₴21.85 million. Finbalance reported that in accordance with the amicable agreement, the Plant, as a property guarantor, had paid that amount to the NBU towards debt repayment to PrivatBank on refinancing.

According to court materials, the Nikopol Ferroalloy Plant pledged its movable property (locomotives and open cars) worth ₴40 million to the NBU. In accordance with the amicable agreement, approved by decision of the Economic Court of Dnipropetrovsk region dated 28.08.2019, the property guarantor repaid amount, close by the meaning (₴21.85 million) to the creditor.

Previously, the NBU had publicly stated that the initiator of the amicable agreement was the Nikopol Ferroalloy Plant, and it provided the possibility of repayment of liabilities amount during 12 months in equal shares without commission. At that, on September 6, 2019, the plant repaid all debts prior to the scheduled maturity date.

According to the NBU, on October 31, 2019, the Economic Court of Dnipropetrovsk region approved one more amicable agreement between the NBU and JSC Nikopol Ferroalloy Plant, as a property guarantor of PrivatBank on refinancing.

As reported, in September the employees of the Nikopol Ferroalloy Plant picketed the main office of PrivatBank in Dnipro (therefor, the enterprise was trying to rent the parking in front of the bank), and in November-December they participated in protests near the building of the NBU in Kyiv.

According to PrivatBank’s statements, as of December 1, 2019, its debts to the NBU according to the stabilization loan amounted to ₴7.7 billion, and (while at the beginning of 2017—that is actually after nationalization – the total debts of PrivatBank to the regulator amounted to ₴18 billion).

In 2018 the National Bank filed 148 claims against the former owner of PrivatBank—Ihor Kolomoisky (financial surety provider) and 32 companies associated with him – property guarantors for collecting nearly ₴10 billion (according to refinancing credit of 2008-2015).

According to the NBU, the courts already made 21 decisions in its favour of foreclosure on the mortgaged property by PrivatBank’s commitments for total amount of ₴1.2 billion, 18 of which took legal effect, and execution orders were sent to the bodies of the State Enforcement Service for compulsory enforcement.