Ukraine's Cabinet of Ministers has approved the sale by Ukrgasbank of the right of claim to Ellada oil extraction plant (Kirovohrad Oblast), part of Creative agricultural group, to Kernel for $96.7 million.
The corresponding decision was made at a cabinet meeting on February 11. Minister of Agricultural Policy and Food Oleksiy Pavlenko abstained from voting for the proposal of the Finance Ministry.
“According to the results of a tender it is proposed to pass a decree on the sale at a nominal value of $95.755 million of the right of claim under the problem loans of PJSC Creative secured by the property complex of PJSC Ellada. Thus, we’ll avoid a total loss of $95 million,” bank board chairman Kyrylo Shevchenko said.
According to him, the total credit issued to Creative is $86 million, the remaining sum is interest on the loan, namely about $10.76 million.
“One of Creative’s companies, Zernovy Terminal, offered $95.755 million for the right of claim on the loan,” Shevchenko said.
He said Deloitte&Touche was involved in appraising the value of the property complex, which estimated the current cost of the plant at $36 million.
