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Milkiland made another important step towards the settlement of the relations with the Group’s creditors

26.10.2017

On 29 of September 2017, the loan amendment agreement to Loan facility agreement between PJSC “First Ukrainian International Bank” and the Group’s subsidiary, LLC “Milkiland Ukraine”, on restructuring of the indebtedness to this creditor, was signed. The full text of Milkiland’s current report on this issue could be found by the following link: http://www.milkiland.nl/upload/iblock/35c/Current-Report-13-Signing-the-Restructuring-Agreement-PUMB-26Oct2017.pdf

Comment by Oleksandr Androshchuk, CFO, Milkiland N.V.:

“By signing the loan amendment agreement to Loan facility agreement with PJSC “First Ukrainian International Bank”, we, at the current stage, practically settled the relations with the creditors in the Ukrainian perimeter of our Group.

Earlier, by the end of July 2017, we reached the agreement on the restructuring of the indebtedness of the Group’s Polish subsidiaries to Pekao Bank S.A., thus settling down the debt servicing situation in this country.

In Russia, the respective relations with the creditors are being resolving within the procedure of the bankruptcy of JSC “Ostankino Dairy Combine”, after implementation of which, as we informed the public, Ostankino has been continuing its usual operations.

Thus, Milkiland, as of today, made several important steps towards finding a mutually acceptable compromise with the Group’s creditors.

We are striving to success in reaching the agreement on the restructuring of Milkiland’s remaining indebtedness under the Loan Facility Agreement with a syndicate of international banks formed by Raiffeisen Bank International AG, as a facility agent, UniCredit Bank Austria AG and ZAO Raiffeisenbank as lenders of the facility, as the Lenders.

This
agreement is the main and the last unresolved issue on the way of the final financial stabilization of Milkiland, after the shocks absorbed by the Group’s business in 2014-2015, due to the unfavorable macroeconomic situation in the key Group’s markets of Ukraine and Russia and also loss of the access to the traditional export Russian market”.