Business news from Ukraine

“Lokhvytsia Distillery” to be re-auctioned at reduced price

On May 23, the State Property Fund of Ukraine (SPFU) will hold a second online auction for the privatization of the unified property complex of the State Enterprise Lokhvytsia Distillery in Poltava region, according to the Prozorro.Sale system.

According to the report, the asset consists of 139 real estate objects and structures. The area of the land plots is 19 hectares, and the production area of the enterprise is 28614.4 square meters. The plant has 27 vehicles and special equipment on its balance sheet.

The company is engaged in distillation, rectification and mixing of alcoholic beverages. The company’s capacity allows it to produce 6 thousand decaliters of rectified alcohol per day. The company has been out of business since 2009.

As of March 31, 2024, the overdue accounts payable of the SOE amounted to UAH 55.68 million. The average number of employees is three.

The EMC of SE Lokhvytsia Distillery was put into operation in 1934, and in 1937 it was transformed into a distillery. In Soviet times, the plant was one of the largest industrial enterprises in the city, with social infrastructure facilities and houses on its balance sheet. Already in independent Ukraine, the distillery became the largest enterprise in the alcohol industry in Ukraine.

Today, the company is one of the largest wage debtors among enterprises in Poltava region.

The starting price of the lot is UAH 11.22 million.

This is the second attempt by the SPF to hold an auction to sell the company. The first one was unsuccessful – the auction in March was canceled due to the lack of bidders. At the initial auction, the starting price of the property was announced at UAH 11.3 million.