Deposit Guarantee Fund will hold a repeated auction on September 24 to sell liabilities on credit agreements of Delta Bank on the Debt Exchange, Inc. (DebtX, Delaware) increasing the starting price up to UAH 4.98 billion (5.7 times).
Oil and fat complex in Illichivsk and infrastructure in the Chornomorsk seaport are the parts of poll of assets of Delta bank, the fund reported on its website.
“The bids will run under the Dutch scheme [on lowering price],” the Deposit Fund said.
The asset pool includes legal claims (15 items), property rights under credit agreements (seven items) and receivables.
On July 9, the executive directorate of the Deposit Guarantee Fund annulled the results of an open auction to sell liabilities on credit agreements of Delta Bank with the book value of UAH 4.85 billion ($182 million) on the Debt Exchange, Inc. (DebtX, Delaware) for UAH 182.5 million with the starting price of UAH 868.8 million, taking into account decision of the National Bank of Ukraine (NBU) made on July 8, which annulled the results of the auction.
The NBU on July 8 revoked its decision made on April 9, 2019 approving the sale of the oil and fat complex in Illichivsk and infrastructure in the Chornomorsk seaport used as collateral for credits issued by Delta Bank over possible abuse by the buyer – Sky financial company, the beneficiary of which is the co-owner of Kernel Andriy Verevsky.
The price of the same assets at a similar auction held March 6 of this year amounted to UAH 906.2 million with the same buyer, but the district administrative court locked the deal under the suit of a company, which did not participate in the bidding.
According to the NBU, the auction was held with the presence of circumstances and possible manipulations on the part of the buyer, which could affect the outcome of the auction and the sale of the property at a lower price. According to the NBU, for three months the assets could not depreciate several times.
The Concorde Capital investment group has won the second auction to sell assets used as collateral for commercial loans taken in the National Bank of Ukraine (NBU), Deputy Managing Director of the Deposit Guarantee Fund of Ukraine Svitlana Rekrut has said.
“The auction was held on DebtХ (Delaware, the United States) on January 16, 2019. This is so-called “U.S. platform.” We sold the pool [of assets] for UAH 48.079 million. Only two bidders took part in the auction, and the winner is Concorde Capital,” she said in an interview with Interfax-Ukraine.
Concorde Capital CEO Igor Mazepa confirmed to Interfax-Ukraine that the company won the auction.
The final agreement has not yet been signed.
Rekrut also said that the anchor assets in this pool were the assets of Eurogasbank, including the Geneva Hotel in Truskavets, and other real estate. Literally two weeks before the auction at DebtХ, the ex-shareholder of Eurogasbank, through bankruptcy and the purchase and sale agreement, withdrew the liens.
“That is, the re-registration took place almost on the eve of the auction” Rekrut said.
According to a source of Interfax-Ukraine, the beneficiaries of the Geneva hotel in Truskavets are people’s deputy Andriy Lopushansky (Petro Poroshenko Bloc parliamentary faction) and ex-shareholder of Eurogasbank Oleksiy Ivchenko.
As reported on the website of the Deposit Guarantee Fund, the initial price of the pool of assets with the book value of UAH 6.5 billion was set at UAH 240.394 million. The assets were bought at the lowest price of the lot.
All assets pledged by the National Bank have repeatedly been put up for individual trading on the ProZorro platform and were not sold even after reducing their value to 20% of the book value. Then, these unsold assets were pooled and transferred to the DebtX and First Financial Network (FFN, Oklahoma City, the United States) to sell them using the Dutch model as part of a joint pilot project of the NBU and the Deposit Guarantee Fund. In this case, the specified pool of assets was already put up for auction at DebtX and FFN a year and a half ago.
Eurogasbank was founded in 2006. The largest shareholders in the second quarter 2014 were Oleksiy Ivchenko with 39.6296% of shares, Halyna Ivchenko with 31.9574%, and Khrystyna Ivchenko with 17.7778%.
The NBU on November 17, 2014 approved a resolution on the abolition of the banking license of the bank and its liquidation.