Ferrexpo court dates delayed as operations continue

25th Mar 2024 09:10

(Sharecast News) - Ferrexpo updated the market on the proceedings involving its subsidiary Ferrexpo Poltava Mining (FPM) on Monday.

The FTSE 250 company said that despite ongoing legal matters, operations at FPM remained robust, with production and sales unaffected.

It said February saw the highest production volumes since the onset of the full-scale invasion of Ukraine in two years earlier.

Regarding the anticipated preparatory hearing at the Commercial Court in Poltava Oblast, scheduled for 12 March to address an application from Kysen, Ferrexpo said the hearing was postponed.

The rescheduled hearing was now set for 9 April, with Kysen claiming a debt increase to UAH 4.5m ($0.12m) under supply agreements.

While FPM continued to contest a separate sureties claim, the company said it had adequate financial resources to sustain operations and settle the debt claimed by Kysen.

Despite restrictions on FPM's bank accounts in Ukraine, the company said it could manage essential payments such as salaries, taxes, and energy suppliers.

However, payment to other suppliers was restricted.

FPM had entered separate arrangements with most key creditors and suppliers to meet payment obligations, ensuring continuity in business operations.

Additionally, two court hearings scheduled for 20 March did not proceed as planned.

A hearing regarding a claim against FPM was postponed due to the presiding judge's recusal, with a new court date pending.

Another hearing related to the FPM general director's bail in a royalties case was postponed due to technical issues with recording equipment, rescheduled for 2 April.

Art 1009 GMT, shares in Ferrexpo were up 3.89% at 44.9p.

Reporting by Josh White for Sharecast.com.