(Sharecast News) - Ferrexpo confirmed on Thursday that an application to initiate bankruptcy proceedings against its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM), has been accepted for consideration by the Commercial Court of the Poltava region.
The company said the application was filed by LLC 'Financial Company' Maxi Capital on 9 May, in relation to a contested UAH 4.7bn ($112.5m) sureties claim.
A preparatory court hearing was scheduled for 27 May, though no formal proceedings had commenced.
Ferrexpo emphasised that the claim remained under appeal at Ukraine's Supreme Court, which had suspended enforcement of the ruling pending a final decision.
At its most recent hearing on 12 May, the Supreme Court assigned the matter to a nine-judge panel, with a date for further proceedings yet to be set.
The company maintained that the claim was without merit in its view, but said it had fully provisioned for the amount in its 2023 and 2024 financial year accounts, citing legal uncertainty.
The contested claim concerns sureties allegedly issued by FPM for the now-insolvent Bank Finance & Credit, which has been in liquidation since 2015.
Ferrexpo said it was continuing to vigorously defend its position, and expected the bankruptcy court to consider the unresolved legal status of the claim in its upcoming hearing.
Reporting by Josh White for Sharecast.com.
Ferrexpo (FXPO)
