Milkiland sold part of agri-business to repay USD 5.3M to Credit Agricole

19 March 2017

According to the statement on web-site of the company Milkiland sold two of its agricultural subsidiaries PJSC Iskra and LLC Uspikh-Mena - to 3rd parties for USD 4.8M.

Basing on restructuring agreement signed between Milkiland and Ukrainian subsidiary of Credit Agricole bank (on USD 14.5M loan), Ukrainian dairy producer should sell part of its agri-business and repay to the creditor not less than USD 4.5M of debt principal till not later than 30 March 2017.

During last months Milkiland sold to its agri-subsidiaries PJSC Iskra and LLC Uspikh-Mena for USD 4.8M, which (along with additional USD 0.5M) have been directed to repayment of debt principal under restructuring agreement. As of 31.12.15 combined bank debt of two a/m companies (presumably to Credit Agricole) stood at close to USD 4M, tangible fixed assets at USD 2.5M.

PJSC Iskra was sold to Ekoprod group (agri-group based in Donetsk region, beneficiary owner is Mr. Ivan Melnik), Uspikh-Mena - to local Sumy group owned by Mr. Oleksandr Andruschenko (the group includes several agricultural enterprises with total land bank of about 20k ha).

News are positive for Milkiland, which still negotiates restructuring agreements with its largest creditors Raiffaisen and UnicreditBank (loans in total amount of USD 69M) and also Sberbank Russia (USD 5M).

Before a/m sale main agricultural assets of Milkiland were land bank of about 23k ha and 2.6k milking cows, which provided Ukrainian part of the group for 9% of total raw milk intake.

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