Ferrexpo PLC on Monday said a Ukrainian court of appeal confirmed a $125 million claim against the company over loan agreements.
Ferrexpo said the claim was made against Ferrexpo Poltava Mining for UAH4.73 billion. FPM now will file an appeal to the Supreme Court in Ukraine, with Ferrexpo saying the local subsidiary has ‘compelling arguments to defend its position’.
Ferrexpo is Baar, Switzerland-based iron ore pellet producer in Ukraine, supplying the pellets to steel makers globally. It said its operations in Ukraine remain unaffected by the legal case.
Ferrexpo said the claimant, which it didn’t name, asserts that it acquired rights under loan agreements. It alleges that FPM provided sureties to ensure the performance of these obligations, the company said.
Both the court of first instance, back in August, and now the court of appeal have ruled in favour of the claimant and against Ferrexpo.
Ferrexpo shares were down 1.9% at 84.20 pence early Monday in London. It has a market capitalisation of £503.9 million.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
