Business
Update regarding Ukrainian subsidiary
Ferrexpo plc announced that a local court in Ukraine has ruled to open bankruptcy proceedings against its subsidiary, Ferrexpo Poltava Mining (FPM), appointing an insolvency manager despite the ongoing Supreme Court review of a UAH4,727 million contested sureties claim from Maxi Capital Group. FPM will appeal the ruling, but the appeal does not suspend the bankruptcy proceedings, and the potential impact remains unassessable at this time. The company previously recorded a full provision of UAH4,727 million, approximately US$113.5 million as of June 30, 2025, for this claim. Disclaimer*
About this update from Ferrexpo Plc
[{"type":"text","content":"\n\n24 February 2026\n \nFerrexpo plc\n(\"Ferrexpo\", the \"Group\" or the \"Company\")\n \nUpdate regarding Ukrainian subsidiary\n \n \n \nFerrexpo plc (LSE: FXPO) provides an update on proceedings against the Group's subsidiary Ferrexpo Poltava Mining (\"FPM\") in Ukraine.\n \nOn 14 May 2025 the Commercial Court of Poltava region (the \"court\") accepted for consideration an application from 'LLC \"Financial Company\" \"Maxi Capital Group\"' (\"Maxi Capital\") to open bankruptcy proceedings of FPM. Maxi Capital filed such application on 9 May 2025 in connection with the contested sureties claim (see further background on the claim below). The court accepted this application for consideration and scheduled a preparatory court hearing for 27 May 2025, which was rescheduled several times by the judge.\n \nToday, the Company regrets to announce that a local court of first instance in Ukraine ruled to open bankruptcy proceedings against FPM. As part of this ruling, the court has appointed an insolvency manager.\nThe legal dispute over the contested sureties between FPM and LLC \"Maxi Capital Group\" is still under review by the Supreme Court of Ukraine. Therefore, a local court in Poltava opened bankruptcy proceedings without a final decision by the Supreme Court on the main litigation having been made and notwithstanding the decision of the Supreme Court dated 1 April 2024 to suspend possible enforcement against FPM.\nFollowing the official publication of the FPM's bankruptcy announcement, the insolvency manager will start compiling a list of creditor claims in accordance with the relevant Ukrainian regulations. The existing FPM management team will remain in place and continue to operate the business during this period. FPM will file an appeal against the court's ruling within the statutory 10-day period. However, the filing of an appeal does not suspend the ongoing bankruptcy proceedings.\nIn the meantime, it is currently not possible to assess the potential impact of such bankruptcy proceedings and their timing, as these depend on further court proceedings, which may extend over a considerable period of time. The Company will continue to assess this development and will make further announcements as and when appropriate.\nContested Sureties claim, background\nOn 7 December 2022, FPM received a...