The sales took place in November 2016 and February 2017, respectively.
The restructuring agreement between Crédit Agricole and DE “Milkiland Ukraine”, ALLC “Nadiya”, LLC “Uspikh-Mena” and PJSC “Iskra” on restructuring of loans totalling $14.5m was signed in July 2016.
According to the agreement, the repayment term was extended until 30 June 2019, and lowered interest rates were applied to the borrower’s indebtedness.
Milkiland-Agro was required to sell the agri-subsidiaries before March 30, 2017 in order to secure the repayment of at least $4.5m.
As the result of selling PJSC “Iskra” and LLC “Uspikh-Mena” to third parties, $4.85m was repaid.
Further amount paid
An additional $511,000 was saved due to lowered interest expenses and also repaid to the bank, leaving the debt to Crédit Agricole at $9.1m as of March 1, 2017.
Natalia Melenevskaya, CEO, Milkiland-Agro, said the company will now focus on the development of its operational subsidiary ALLC “Nadiya” and managing its milk-farm “Krasnosilska”.
Oleksandr Androshchuk, CFO, Milkiland N.V., said the company was happy to fulfill the conditions of the restructuring agreement with Crédit Agricole Bank, one of the largest creditors of Milkiland with its share of approximately 9% of the total debt portfolio of the Group as of March 1, 2017.
Milkiland’s management said it considers this agreement as an important element of the financial stabilization of the group’s business after several hits between 2014 and 2016 due to macroeconomic instability and loss of access to its traditional export markets.