DEBT DISPUTE: Court applies security measures in Enerhoavtomatyka case

Dnipropetrovsk Research Plant accused of failing to meet terms of 2011 loan agreement

Business Ukraine magazine
Wednesday, 07 June 2017 02:27

The Commercial Court of the Dnipropetrovsk region has applied security measures in response to claims by FUIB for the recovery of an outstanding debt from Dnipropetrovsk Research Plant Enerhoavtomatyka and other parties.

The claims date back to a loan agreement concluded in 2011 between FUIB and the Dnipropetrovsk Research Plant Enerhoavtomatyka. The terms of the loan agreement included a surety agreement with LLC Ista-Center acting as surety guarantor, an agreement pledge for movable property with Dnipropetrovsk Research Plant Enerhoavtomatyka acting as pledger and production equipment as collateral, and an additional pledge of movable property with LLC Ukrsplav acting as pledger and production equipment as collateral.

According to the claimant, as of December 2016, the borrower ceased to fulfill its loan repayment obligations. FUIB addressed the case to the courts in response to the failure to meet the agreed loan repayment schedule, as well as the unconstructive position of the borrower during repayment negotiations. On 17 May, FUIB filed a claim with the Commercial Court of Dnipropetrovsk region, seeking recovery of the outstanding debt.  

The court has now moved to satisfy the bank's claim, ruling on the introduction of injunctive measures including the seizure of movable and immovable property, and the transfer of property for safekeeping to the bank. On 30 May, the bank accepted property seized by the State Enforcement Service for safekeeping.

At the current stage of the court proceedings, the debtor companies have suspended production in compliance with safety regulations. FUIB officials have reiterated that the bank is acting solely within the framework of existing Ukrainian legislation.

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