What happened
On February 24, the Economic Court of Poltava Oblast opened bankruptcy proceedings in the case concerning the Poltava Mining and Processing Plant (PGZK). Ferrexpo announced this on the London Stock Exchange. After the announcement, Ferrexpo's market share price fell by 28%.
"The court in Poltava has opened proceedings in the bankruptcy case without a final decision by the Supreme Court."
— Ferrexpo, announcement on the London Stock Exchange
Reason and legal context
The initiator of the proceedings is Maxi Capital Group, which in January 2025 obtained a court judgment against PGZK for UAH 4.7 billion. The case is currently under review by the Supreme Court, but the opening of proceedings in Poltava took place before a final decision by the highest instance.
Maxi Capital Group in 2020 acquired a claim that previously belonged to the bankrupt bank "Finance and Credit," where PGZK was a guarantor. The plant's position is that the Deposit Guarantee Fund sold a claim that had already been repaid; the plant points to a write-off of funds in August 2015 and their return to the company's accounts in July 2019, which is referenced in the decision of the court of first instance.
Operations continue, but risks have risen
The legal proceedings do not halt production: PGZK continues to operate. At the same time, the opening of the case and the drop in quotations increase investor uncertainty and may complicate access to financing. For the region and exports — this is an important signal: the plant is one of the largest exporters of iron ore pellets to Europe, and prolonged court battles can affect logistics and payment discipline.
"Poltava GZK will file an appeal against the court decision within the established 10‑day period. At the same time, filing an appeal does not suspend the course of the bankruptcy procedure... It is currently impossible to assess the potential impact of such proceedings and their duration."
— Ferrexpo
Ownership context and institutional risks
PGZK is part of the Ferrexpo group, whose largest shareholder is businessman Kostyantyn Zhevago. In January 2025 another court already opened bankruptcy proceedings for the Arterium corporation, which is also linked to Zhevago. In addition, the chairman of PGZK's board came under suspicion by several law enforcement agencies in 2023. This sequence of cases increases market and regulator attention on the group of companies.
What to expect next
Key stages are PGZK's appeal and further decisions by the Supreme Court. Court procedures can last months or years, and duration will determine the scale of consequences for the company, its employees and counterparties.
Stock market analysts note that even if production does not stop, reputational damage and a drop in market capitalization make raising investment more difficult. For the state and the economy it is important that court and regulatory processes are transparent — this is a matter of investor confidence and export stability.
Conclusion
This story combines a legal dispute, market reaction and corporate governance issues. The next moves will be in appeals and the courts: whether the plant can defend its position and avoid systemic consequences for exports and jobs is the key question for the region and investors.
