The transaction for the debts of the agricultural holding Mriya has given a negative result

Сделка по долгам агрохолдинга Мрия дала негативный результат

Agricultural holding Mriya has bought the company from Saudi Arabia

The analysis of debt restructuring has shown the problem of agribusiness in Ukraine. A four-year deal has had negative results both for investors and for the state.

The restructuring of the agricultural holding Mriya in 2014-2015, has had negative consequences for the company and of the agrarian market of Ukraine. This is stated in the report of the investment company Concorde Capital, UNIAN on Monday, October 8.

The Report “Restructuring Mriya. Recovery does not inspire” was signed by the head of the analytical Department of Concorde Capital Oleksandr Parashchiy.

The authors of the study concluded that the unsecured creditors of Mriya, including the owners of Eurobonds were able to recover only from 3.3% to 4.1%. This proportion of cash back after four years of tough negotiations does not look promising, the report says.

“It is difficult to say whether the creditors of Mriya an alternative to absorption in 2014. Most likely, it was not. Also, they failed to take control of the whole business, which was owned by the former shareholders, although corporate structure Mriya was not very difficult,” the study says.

The authors of the report note that “all the loss and hardship on the road to debt restructuring suggests how risky are attempts to capture Ukrainian farm business, especially in the context of weak property rights on land.”

Concorde Capital found that during this period land Bank Mriya decreased from 320 thousand ha, which was before the default, to 219 thousand hectares, and then to 162 thousand hectares.

At the same time, the company’s revenues fell from nearly $ 500 million in 2013 to less than $ 100 million in 2015-2017.

So, for the company and generally for the agricultural sector of Ukraine, this deal (debt restructuring) had a pronounced negative impact, experts believe. Also lose the state remains. In particular, it has received less tax due to reduced production volumes in the agricultural holding.

As you know, financial advisors as part of the restructuring Mriya by Rothschild and ICU, which had actually controlled the restructuring process.

It is also noted that because of the failure of the restructuring and reduction of production volumes in the agricultural holding of Ukraine received less in taxes.

As you know, financial advisors as part of the restructuring Mriya by Rothschild and ICU, which had actually controlled the restructuring process.

Recall, September 12, Mriya Agroholding has bought the company from Saudi Arabia.

 

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