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can anyone follow this ? I can't ! Its rescue plan involved recapitalization by converting shares of its largest depositors into equity with a buyback option and liquidity injection, according to Kyiv-based investment house Investment Capital Ukraine. Some Hr 5.1 billion in share capital increase had been announced, Hr 2.5 billion of which in August. And the NBU gave Hr 1.45 billion in refinancing. More than 93 percent of the financial institution’s depositors, about 234,000 individuals, will get their money back from the Deposit Guarantee Fund, according to the NBU statement. Dragon Capital estimates that the DGF will need to repay Hr12-14 billion to retail depositors.

i am happy to see $100m in bondholders . Their debt is part of the insolvency calculations but they 100% behind us in the queue for getting paid .

At close of business on Sept. 17, the National Bank of Ukraine took the bank, the nation’s 10th largest by assets, into receivership after Zhevago failed to contribute liquidity, mainly by not repaying related-party loans to the bank by selling his non-core assets. In a statement released on its website, the NBU said that the majority of the bank’s assets were tied to loans to businesses controlled by the Poltava businessman and lawmaker, whose net worth Forbes estimates is $730 million. Since the country plunged into an economic crisis early last year, the banking sector, long plagued by so-called pocket banks that function as the extended financial departments of owner firms and often engage in connected-party lending, has seen more than 50 banks declared insolvent. Finance & Credit had been in trouble for the past seven months. Its rescue plan involved recapitalization by converting shares of its largest depositors into equity with a buyback option and liquidity injection, according to Kyiv-based investment house Investment Capital Ukraine. Some Hr 5.1 billion in share capital increase had been announced, Hr 2.5 billion of which in August. And the NBU gave Hr 1.45 billion in refinancing. More than 93 percent of the financial institution’s depositors, about 234,000 individuals, will get their money back from the Deposit Guarantee Fund, according to the NBU statement. Dragon Capital estimates that the DGF will need to repay Hr12-14 billion to retail depositors. “Considering the current load of the DGF and its financial capabilities, we do not expect payments to begin before the beginning of 2016,” ICU said in an emailed note on Sept. 18. Also of concern are the bank’s bondholders with $100 million coming due in January 2019 as the financial institution faces liquidation. Because Ferrexpo has $174 million on deposit at Finance & Credit, the rest are held offshore, “the development clearly casts some uncertainty on the company’s financial position,” analysts at Cantor Fitzgerald said, cited by the Financial Times. The main concern is whether the London-listed company can make payments inside Ukraine in the absence of cash and whether it can maintain normal operations. Zhevago also is an independent lawmaker and one of the legislature’s most truant members. Since November he has electronically registered four out of 98 times in the session hall as of Sept. 18.

Having a look at the twoist recent sets of accounts - there seems to be a dramatic drop in Cash . On Friday we were told our total cash was $280m , but we had close to $500m Six months ago . No sign of debt wrote down . Anyone know why our cash dropped to $280m .... I know it's less now because of the bank issue .

Here is how Monday will roll. The administrator will march into the bank at 7am and tell the CFO that the CB now are his bosses and Mr Z has no executive powers anymore . An emergency meeting will be called and Mr Z will be asked to explain how he is going to pay up. If he co-operates they will work together to liquidate his assets . If he decides to fight them, then it's court . That can take months or years depending on what he has assigned to them already . His biggest asset are his shares here. Could they be already lodged as collateral ? Can they be seized ? It's a very interesting case .study . He only owes around $160m or $180m USA. Not a fortune by his standards . .strange he didn't sell shares here to keep repayments up ? We may be in a lot better shape than the markets think ....time will tell . DYOR GLA .

the Central Bank is very powerful in Ukraine as elsewhere but more so here given there is $40us dollars due to be invested by the IMF-EU over the next 4 years. Hence , there is a huge housekeeping job underway, and has been for a while. Apparently Mr Z had being very co-operative with the NCB and had done all asked of him, until recently when he defaulted on some loans , the CB acted promptly and placed the bank in 3 months administration and took control . Mr Z is now in deep trouble his assets will be called in and set against his loans. If he has enough assets to clear his loans - he gets his bank back . If not the bank's assets will be sold off, mostly its loan book, but also its trading infrastructure and branches . Whatever it generates will get split between the unsecured depositors ( not protected by the deposit guarantee ). Indeed, the entire bank may be sold to another bank - loan book and all . As a bare mimimum the loans must have some asset backed collateral . My guess and its admittedly a guess is that 50% at least will be recovered .

is only for the first UK 200,000 lodged per customer . It doesn't cover FXPO money . Once the fund pays ordinary deposit holders , the fund then becomes a creditor just like us and tries to recover its money ( already paid out ). It is not ( normally ) a perferental creditor , so it gets the same percentage in the dollar / euro rate we will get . The average is 72% recovery. Yes , it takes years , and yes some monies can be released earlier .

apologies for spellings etc

I don't see the IMF or international I situations. Bailing us out . We are making money so it will be a restructure of our loans. The CEO of the bank will have to step aside in administration . The CEO of this firm will not. The Ukrainuan banks have been put through tough stress tests over the last years . So it's hard to believe this is an absolute nightmare . They had 7.5% Teir cap reserve in June and the Govt Kent them $20m after that . Or $40m I don't have figures here in front of me. So, I think this is a liquidity issue and not a bad loan book issue . The CB said it acted ' promptly ' ! Too promptly ? . They also said the bank is operating normally since August . They will out the screw on Mr Zhevago to call in his loans - with personal guarantees that will be swift ( month's not years ). I wouldn't be shocked if it pulled through administration , to two Ukrsinian banks survived Administration already in the last 12 minths . I gather the doors are still open for business ? Normal administration .perhaps , we will have our $147m re-classified. I wouldn't be writing the money off just yet.

actually I know very little about all this , I am Only posting as I find things . I welcome your input

the banks biggest creditor is the depositors . These are insured under the governments guarantee deposit insurance scheme. That's 93% of all retail deposits . After that the creditors fall into the following priorities for payment 1 the administrator and staff payments 2 the deposit insurance company having already paId out has an equal claim as commercial depositors - 3 next in line are the tax man and the Bondholders ... A case can be made for retail depositions that are uninsured to be paid first , as innocent non finance people . So, our $174m is in the same position in the Q as the deposit insurance scheme corporate reclaim dept. Treated as an equal claim ..,,, that's not a bad position to be in.

the fact that this bank has being operating normally since August 1st suggests that the administrators will declare it a viable bank in three months time, after they have nailed Mr Z, taken control . It would cost too much to shut the entire operation down. A debt for equity swap siezure seems likely . The bank will be sold on. This would be easier than an asset strip and sell off of the entire assets and loan book. In any case the market has decided our $174m has gone . And the SP reflects that . How about this 1-the CB take control of the company and Take over the entire equity 2 they sell the assets and we get a cent in the dollar percentage . 3 of they re-capitalize it Iin a debt of equity swap. In either case we will get some level of compensation .

I have had a good read through the accounts , too much to get through it all but , I can't see if The company had loans with the FandC bank . Certainly ,other companies controlled by Mr Z did get loans. This bank had Teir 1 capital protection of 7.5% in March after the currency crash . Since then the central bank gave them a loan of $40m in June . Also Mr Z pumped $40m in during February Mr Z loans are covered by personal guanatees . His shares in this company would settle a lot of debt ! All that said its CCC credit ratings all around . I read that the bank has being operating normally since August . New chairman appointed then . By the central bank . The bank now under state control will start taking assets back under the guarantees , his stake here could be sold or reduced . Remember it's personal guarantees. The company mentions that our cash here could become 'reclassified ' ? Is that we will get bonds or shares or placed as a credit ?

rated this Caa3 for deposits in March . Madness .

A huge question remains . Are our loans in this bank colaterised by our cash deposits. If so, nothing has been lost.

just a correction . It's $174m And not $150m.

the decision to go into administration was the central bank's and not the bank itself . They are cleaning up the banking system there and pulled the trigger. I doubt our main shareholder say it coming . So quickly at least . They will now call in all his loans , personally guaranteed , take his shares off him, good god he only owes the bank $150m . That's recoverable . Our company's loan is serviceable .we've $100m overseas in cash . I Abe no idea how the rest of the loan book stacks but I guess it's like most banks there. Grim. I am going to make a prediction . I predict we will get 80% of our cash back . DYOR ... .

Yes the market agrees with you. And slaughtered the SP today. I see it differently , the IMF are going to pump $40 billion into Ukraine's banking system over the next four years. new stricter criteria are being applied .when Zhevago started to delay them and didn't come up with promised cash the central bank simply pulled the plug. All UKR banks have a bare minimum of 5% dropout capital tier 1 funds in treasury . I think we will get a return once the administration period is over. There is collateral against the loan book. I think Mr Z is the NCB target and not our company .

so what is going to happen, and what are the prospects of us seeing the $175m returned. ?

correction $3.6 BILLION, not Million on the previous post..