REG - Ferrexpo plc - Update regarding Ukrainian subsidiary

FerrexpoAnnouncement

Tue 15:45

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RNS Number : 2262U  Ferrexpo PLC  24 February 2026

24 February 2026

 

Ferrexpo plc

("Ferrexpo", the "Group" or the "Company")

 

Update regarding Ukrainian subsidiary

 

 

 

Ferrexpo plc (LSE: FXPO) provides an update on proceedings against the Group's
subsidiary Ferrexpo Poltava Mining ("FPM") in Ukraine.

 

On 14 May 2025 the Commercial Court of Poltava region (the "court") accepted
for consideration an application from 'LLC "Financial Company" "Maxi Capital
Group"' ("Maxi Capital") to open bankruptcy proceedings of FPM. Maxi Capital
filed such application on 9 May 2025 in connection with the contested sureties
claim (see further background on the claim below). The court accepted this
application for consideration and scheduled a preparatory court hearing for 27
May 2025, which was rescheduled several times by the judge.

 

Today, the Company regrets to announce that a local court of first instance in
Ukraine ruled to open bankruptcy proceedings against FPM. As part of this
ruling, the court has appointed an insolvency manager.

The legal dispute over the contested sureties between FPM and LLC "Maxi
Capital Group" is still under review by the Supreme Court of Ukraine.
Therefore, a local court in Poltava opened bankruptcy proceedings without a
final decision by the Supreme Court on the main litigation having been made
and notwithstanding the decision of the Supreme Court dated 1 April 2024 to
suspend possible enforcement against FPM.

Following the official publication of the FPM's bankruptcy announcement, the
insolvency manager will start compiling a list of creditor claims in
accordance with the relevant Ukrainian regulations. The existing FPM
management team will remain in place and continue to operate the business
during this period. FPM will file an appeal against the court's ruling within
the statutory 10-day period. However, the filing of an appeal does not suspend
the ongoing bankruptcy proceedings.

In the meantime, it is currently not possible to assess the potential impact
of such bankruptcy proceedings and their timing, as these depend on further
court proceedings, which may extend over a considerable period of time. The
Company will continue to assess this development and will make further
announcements as and when appropriate.

Contested Sureties claim, background

On 7 December 2022, FPM received a UAH4,727 million claim from Maxi Capital in
respect of contested sureties under which Maxi Capital alleges that FPM
guaranteed the performance of obligations by Bank Finance & Credit under
certain loan agreements. Bank Finance & Credit is undergoing a liquidation
process after having been declared insolvent by the National Bank of Ukraine
and put under temporary administration on 18 September 2015.

As Ferrexpo previously announced, on 26 January 2024, a Ukrainian court of
appeal confirmed the UAH4,727 million claim against FPM (approximately US$124
million at that time). On 30 January 2024, FPM filed an appeal to the Supreme
Court of Ukraine, and on 1 April 2024, the Supreme Court of Ukraine suspended
the possible enforcement of the decision of the Ukrainian court of appeal.
Enforcement procedures therefore cannot be initiated by Maxi Capital pending a
final decision by the Supreme Court, or the Supreme Court's suspension order
otherwise being lifted. Although the Group's management is of the opinion that
this claim is without merit, the Group recorded a full provision in the amount
of UAH4,727 million (approximately US$113.5 million as at 30 June 2025) in its
FY23 financial accounts, and this provision was retained in the FY24 financial
accounts and the interim results for six months ended 30 June 2025,
considering the magnitude of this specific claim and the risks associated with
the judicial system in Ukraine.

This announcement contains inside information. The person responsible for the
release of this announcement is Mark Gregory, Group Company Secretary.

 

For further information please contact:

 Ferrexpo:
 Nick Bias       n.bias@ferrexpo.ch (mailto:n.bias@ferrexpo.ch?subject=Power%20supply)  +44 (0)7733 177 831

 Tavistock:
 Jos Simson      ferrexpo@tavistock.co.uk                                               +44 (0)20 7920 3150
                 (mailto:ferrexpo@tavistock.co.uk?subject=Power%20supply)
 Gareth Tredway                                                                         +44 (0)7785 974 264

 

About Ferrexpo:

About Ferrexpo: Ferrexpo is a Swiss headquartered iron ore company with assets
in Ukraine and a listing in the equity shares commercial companies category on
the London Stock Exchange (ticker FXPO) and a constituent of the FTSE
All-Share index. The Group produces high grade iron ore products, which are
premium products for the global steel industry and enable reduced carbon
emissions and increased productivity for steelmakers when converted into
steel, compared to more commonly traded forms of iron ore. Ferrexpo's
operations have been supplying the global steel industry for over 50 years.
Before the full-scale invasion of Ukraine in February 2022, the Group was the
world's third largest exporter of iron ore pellets. The Group has a global
customer base comprising of premium steel mills around the world. For further
information, please visit www.ferrexpo.com (http://www.ferrexpo.com/) .

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