Problems of related entities hang over Milkiland

26 December 2016

Russian state-owned Sberbank fights with owned by Milkiland Russian enterprise Ostankino Dairy. The company defaulted on working capital loan repayment to the bank in total amount of more than USD 5M.

Till recent date owner of Milkiland Mr. Yurkevich negotiated with the bank complex deal renewal of mentioned loan (which represents just about 5% of total Milkiland Group credit portfolio) along with potential refinancing of other group loans. In addition, according to dairynews.ru in Ukraine Yurkevich negotiated with Sberbank restructuring/refinancing of his Ukrainian real estate development business debts (this direction is represented by the company DP Krai Property, which is owner of three shopping malls Magellan with total trade area of about 100 sq m, debt of the company as of 31.12.15 made about USD 60M).

So, as we understand, Mr. Yurkevich failed to reach understanding with Sberbank during their negotiations as during restructuring negotiations as for Milkiland debt lender asked for some conditions, not related to Milkiland, but to Ukrainain Krai Property, which formally has no relations to Milkiland.

It means that Milkiland continues to face problems, which do not relate to core business, but to other businesses of the owner (previously Milkiland has written off its deposit in amount of EUR 8.3M, which was placed in bankrupted bank, allegedly related to Mr. Yurkevich, - Ukrainian Professional Bank).

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