Ferrexpo unit faces bankruptcy proceedings in Ukraine, shares plummet

Feb 24 (Reuters) -

A Ukrainian court has opened bankruptcy proceedings ​against Ferrexpo's ‌iron ore mining subsidiary in the country and ⁠has appointed an insolvency manager, ⁠the London-listed company said ​on Tuesday, sending its shares down over 29%.

The miner said Ferrexpo Poltava Mining would ​appeal ‌the ruling within the statutory 10-day period, and that the management would remain in place and run the business during that ​time.

But an appeal would not suspend the ‌bankruptcy proceedings.

Shares of the miner fell as much as 29.7% to 50.5 ‌pence, making it the top loser on the FTSE smallcap index.

In May 2025, the Commercial ​Court of Poltava had accepted an application to consider ‌opening bankruptcy proceedings against the subsidiary.

Ferrexpo said on Tuesday the impact and timing of any bankruptcy ⁠proceedings ⁠remain unclear pending further court proceedings.

Ferrexpo ‌has been battling

legal disputes

in Ukraine since 2022, when ​its ​controlling shareholder, Ukrainian billionaire Kostiantyn Zhevago, ‌faced allegations that he embezzled money from the now-bankrupt lender Finance & Credit Bank.

Ferrexpo