“Kernel” agreed to defer payment of loans for $600 million
12.01.2023 - 09:25
Agroholding “Kernel” agreed with creditors to postpone repayment of loan obligations by $600 million.
The company signed an agreement with its creditors, in particular Natixis, ING, EBRD and EIB, on exemption from repayment of two tranches of guaranteed bonds of $300 million each, with a 6.5 repayment rate, respectively, in 2024 and 2027. The agricultural holding reported this to the Warsaw Stock Exchange .
Previously, “Kernel” had to pay off the debts by June 30, 2023.
As the company noted, the delay in payments is due to difficulties associated with the russian invasion of Ukraine, as well as logistics for the supply of grain and oil.
“The situation in Ukraine remains extremely uncertain, and the group continues to face a difficult operating environment. Normal business processes were disrupted by the Russian blockade of Black Sea ports. This led to a decrease in grain and oil exports from February 24, 2022. The group welcomes the agreement to allow the export of grain from Ukrainian Black Sea ports, there are, as before, many obstacles preventing the full restoration of exports to the pre-war level,” the agricultural holding said in a statement.
“Kernel” will continue to pay interest accrued on loans in accordance with the terms of the agreements.
Until February 24, the company took the first place in the world in the production of sunflower oil (7%) and its export (12%). Kernel was also the largest producer and seller of bottled sunflower oil in Ukraine.
In the 2022 fiscal year (July 2021 to June 2022), the company suffered a loss of $41 million, compared to a net profit of $506 million in the previous fiscal year.
