Kharkiv Tractor Plant (HTZ), a member of businessman Aleksandr Yaroslavsky’s DCH group, plans to initiate a preventive restructuring procedure.
According to the announcement of the company’s general shareholders meeting on May 9 published in the National Securities and Stock Market Commission’s (NSSMC) disclosure system, this is the only issue on the agenda.
The notice does not provide any details.
The preventive restructuring procedure was introduced by the Law “On Amendments to the Bankruptcy Code of Ukraine and Certain Other Legislative Acts of Ukraine on the Implementation of Directive 2019/1023 of the European Parliament and of the Council of the European Union”, which came into force on January 1 this year.
Preventive restructuring has secured the ability of companies to restore their financial stability before insolvency. The law provides more opportunities to resolve relations between the debtor and creditors.
As reported, in June 2020, the shareholders of Khartsyzsk Pipe initiated pre-trial rehabilitation of the company due to the threat of insolvency, and in August of the same year, the court approved a pre-trial rehabilitation plan for a period of two years.
In July 2022, Khartsyzsk Pipe applied to the court for amendments to the rehabilitation plan and approval of a new version, justifying this by the introduction of martial law in Ukraine and the constant shelling of Kharkiv, which led to a complete shutdown of the plant and the inability to pay its contractors.
On August 1, 2022, the court approved a new out-of-court rehabilitation plan and extended the out-of-court rehabilitation for three years.
In 2023, with the support of the United Nations World Food Program and the Swiss Mine Action Fund (FSD Ukraine), Khartsyzsk Pipe developed, certified and launched a demining machine based on the T-150 crawler tractor.
Founded in 1930, Khartsyzsk Tractor Plant specializes in the production of tractors and special equipment for use in agriculture, utilities, and construction. The plant does not report its financial and business results.
According to the Claroty Project, Khartsyzsk Pipe ended 2024 with a loss of UAH 359 million, compared to UAH 14.6 million in net profit a year earlier, with net income up 50.6% to UAH 300 million. Current liabilities increased to UAH 1.7 billion from UAH 251.7 million, but long-term liabilities decreased from UAH 1.2 billion to UAH 86 million.
