News date: 1 March 2016
The Kharkiv Commercial Court of Appeal upheld the decision of the Commercial Court of Sumy Region on extension of rehabilitation of PJSC “Sumykhimprom” for 6 months – until June 8, 2016.
The court of appeal substantiated extension of rehabilitation as follows (quote): “… there is a tendency to reduce unprofitability of the enterprise in 2014 and become profitable in 2015. According to the results of its operations for 9 months of 2015 PJSC “Sumykhimprom” increased its profitability, received positive result in 2015“.
PJSC managed to remain one of the largest enterprises in the chemical industry of the country: not a single object of production facilities was sold during the bankruptcy. More than 4 thousand employees timely receive salary, which is 25% above the average salary in the Sumy region. The enterprise ranks third in the city of Sumy by fiscal charges to the local budget. During the financial rehabilitation more than UAH 120 mln was spent for capital investment, more than UAH 150 mln – for current repairs, more than UAH 320 mln of taxes and fees was transferred to all budgets and social funds.
“Extension of readjustment procedure is the only way to stave off bankruptcy of Sumyhimprom, which is almost 100% state-owned enterprise having a strategic status for the chemical industry of Ukraine, said Roman Marchenko, the asset manager of PJSC “Sumykhimprom”, Senior Partner at Ilyashev & Partners Law Firm. – Our current task is as early as possible approval of the rehabilitation plan, which implementation will eventually bring the enterprise out of crisis”.
The rehabilitation plan 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. The rehabilitation plan was previously approved by the creditors’ committee and the general meeting of creditors. To begin its implementation, the rehabilitation plan must be approved by the State Property Fund and the Commercial Court of Sumy Region.
Recall that bankruptcy procedure of PJSC “Sumykhimprom” started in 2011. The total accounts payable of the state-owned enterprise is about UAH 1.4 bln.
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.