21st Dec 2015 08:39
LONDON (Alliance News) - Ferrexpo PLC, a Swiss-headquartered iron ore company with assets in Ukraine, on Monday noted that the National Bank of Ukraine announced on Friday that Bank Finance & Credit JSC's banking licence will be revoked and that the bank will be liquidated in due course.
As previously reported on September 18, the National Bank of Ukraine declared Bank Finance and Credit JSC, Ferrexpo's principal transactional bank in Ukraine, insolvent.
The bank is a related party, ultimately controlled by Ferrexpo's largest shareholder Kostyantin Zhevago.
"The board of Ferrexpo is assessing the situation and will update the market as necessary. As of September 16, the group's total cash balance was approximately USD280 million after the payment of the interim dividend. Of this cash balance, approximately USD174 million was held at Bank F&C with the remainder held offshore. The group's operations are not currently affected," Ferrexpo said on September 18.
Shares in Ferrexpo were up 4.9% at 16.52 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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