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Court Extended Rehabilitation of State Sumykhimprom until the End of 2016

News date: 23 June 2016

On June 22, 2016, the Commercial Court of Sumy Region extended rehabilitation of PJSC “Sumykhimprom” for 6 months.

The court also obliged the State Property Fund of Ukraine to consider the draft enterprise rehabilitation plan. Recall, the rehabilitation plan was agreed by the creditors’ committee and the general meeting of creditors as early as 2014.

“Consideration by the State Property Fund of the draft rehabilitation plan is a prerequisite before its approval by the court, said Roman Marchenko, the asset manager of PJSC “Sumykhimprom”, Senior Partner at a well-known Ilyashev & Partners Law Firm. This stage will mark the beginning of comprehensive measures for resumption of solvency of the public joint stock company, full settlement with creditors and, thus, recovery of the enterprise”.

The rehabilitation plan of PJSC “Sumykhimprom” provides for the continuation of the enterprise as an integral property complex, saving jobs, continued payment of taxes and fees, and increasing production. However, the rehabilitation plan does not envisage participation of an external investor, the enterprise will remain in state ownership.

Being bankrupt, the enterprise transferred more than UAH 500 mln of taxes and fees to budgets of all levels and social funds.

PJSC “Sumykhimprom” is a key enterprise of chemical industry of Ukraine, included in the list of TOP-100 largest state-owned enterprises. The company produces about 50 kinds of chemical products, the main of which are complex chemical fertilizers (about 53% of sales) and titanium dioxide (about 40% of sales). The company’s products are used in agriculture, construction, paint and coatings industry.