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Milkiland to fulfil the conditions of the restructuring of the indebtedness to one of the largest creditors of the Group

12.03.2017

By selling of two agri-susidiaries of the Group controlled by the Group’s main agri-subsidiary LLC Milkiland-Agro, namely PJSC “Iskra” and LLC “Uspikh-Mena”, in November 2016 and February 2017, respectively, Milkiland fulfilled the conditions of the Amendment agreement to the Loan Facility Agreement with PJSC Credit Agricole Bank (hereinafter, “the Creditor” and “the Restructuring agreement”).

The Restructuring agreement between the Creditor and DE “Milkiland Ukraine”, ALLC “Nadiya”, LLC “Uspikh-Mena” and PJSC “Iskra” on restructuring of a loans in the total amount of USD 14.456 million (EUR 13.1 million) was signed in July 2016.

According to the Restructuring agreement, the repayment term was extended until 30 June 2019, lowered interest rates were applied to the borrower’s indebtedness. It was also required to sell the above mentioned 2 agri-subsidiaries of the Group not later than 30 March 2017 in order to secure the repayment to the Creditor of the principal amount of the indebtedness in the sum not less than USD 4.5 million.

As the result of selling deals of PJSC “Iskra” and LLC “Uspikh-Mena” to third parties buyers, the sum of USD 4.854 (EUR 4.384) million was repaid to the Creditor. Additional USD 0,511 (EUR 0.462) million in 2016 were saved due to lowered interest expenses and also repaid to the Bank. Outstanding amount of the principal sum of indebtedness to the Creditor as of 1 March 2017 stood at USD 9.1 (EUR 8.22) million.

Comment by Natalia Melenevskaya, CEO, Milkiland-Agro:
“By March of 2017 we successfully met the conditions of our Creditor by selling of two of our non‑core subsidiaries. We now focus at the development of our key operational subsidiary ALLC “Nadiya” managing our modern milk-farm “Krasnosilska”. Thus, in the current year we’re continuing our milk production and other agricultural business to further fulfill the obligations to the Creditor based at the operational cash-flow of our company and agreed repayment schedule”.

Comment by Oleksandr Androshchuk, CFO, Milkiland N.V.:
“We were happy to fulfill the conditions of the Restructuring agreement with Credit Agricole Bank, one of the largest creditors of Milkiland with its share of c.9% in the total debt portfolio of the Group as of 1 March 2017.

Milkiland’s management consider this agreement as an important element of the financial stabilization of the Group’s business after several hits it absorbed in 2014-2016 due to macroeconomic instability and loss of the access to the traditional export markets.

We also highly appreciate the positive and cooperative approach of Credit Agricole Bank to further collaboration with Milkiland and follow the same way in our relations with other creditors of the Group”.