By KYIV Dec 5 (Interfax-Ukraine) – Production and Commercial Firm Velta LLC with assets for the extraction of titanium-containing ores in Novomyrhorod, Kirovohrad region, and PrJSC Prominvestbank (PIB, Kyiv), which is managed by the Deposit Guarantee Fund, signed an agreement on debt restructuring in the amount of about UAH 6 billion.
According to the press release, the agreement between Velta LLC and PIB was signed on December 1 of this year.
It is noted that this step allowed the company to settle the debt and guarantee a positive credit reputation.
It is clarified that Velta entered into a loan agreement with Prominvestbank in October 2011. The proceeds in the amount of $93 million were used for the construction of a titanium mining and processing complex in Kirovohrad region. However, in 2014, as a result of the factory being set on fire, the company lost about 60% of its capacity. This force majeure circumstance led to the loss of more than $60 million in profit and, as a result, limited the ability to settle loan obligations with Prominvestbank on time.
“For almost 10 years, Velta was hostage to the Russian bank. All our attempts to restructure the debt were simply blocked. Constructive negotiations began only after Prominvestbank had been transferred to the management of the Deposit Guarantee Fund in 2021. I would like to note that Velta serviced loans making payments of interest,” Andriy Brodsky, general director of Velta, commented on the situation.
It is also reported that Velta LLC generally paid PIB about UAH 3.5 billion before the restructuring and will continue regular payments under the new conditions signed with the lender.
It is recalled that in 2022, in connection with the beginning of the large-scale Russian invasion, the NBU decided to revoke banking licenses and liquidate banks under the control of the Russian Federation, including PIB, thus Prominvestbank found itself under the control of the Deposit Guarantee Fund.
Velta LLC was registered in April 2000. The main activity is the extraction and production of ilmenite concentrate. Velta launched its own research center in 2017 with the aim of developing a new method for titanium production. Today, the innovative Velta Ti Process technology has already received three national and two U.S. patents.
