In Ukraine, a court of first instance has opened bankruptcy proceedings against Ferrexpo Poltava Mining (FPM) — the Ukrainian subsidiary of Ferrexpo that operates the asset known as Poltava Mining. The company stated that the decision was issued by the Commercial Court of the Poltava Region and that an insolvency manager has been appointed.
What Triggered the Bankruptcy
The proceedings were initiated following a claim by FC “Maxi Capital Group” amounting to UAH 4.727 billion. The claim relates to disputed surety agreements under which Maxi Capital asserts that Poltava Mining / FPM guaranteed the obligations of Bank “Finance and Credit” under certain loan agreements. The bank has been in liquidation since 2015 after being declared insolvent.
Key Detail: Parallel Review in the Supreme Court
Ferrexpo noted that in January 2024, an appellate court upheld claims totaling UAH 4.727 billion, but in April 2024 the Supreme Court suspended potential enforcement of that decision pending review. Despite this, the court of first instance proceeded to open bankruptcy proceedings.
Appeal Does Not Suspend the Procedure
The company stated that it will appeal the ruling opening bankruptcy proceedings; however, according to Reuters, an appeal does not automatically suspend the bankruptcy process itself.
Market Reaction and International Context
The news received wide coverage in international media. Reuters reported that following the court decision, Ferrexpo shares fell by nearly 30% (to approximately 50.5 pence), becoming one of the worst performers of the day in the FTSE SmallCap segment.
French-language financial media, including Zonebourse (which republishes Reuters in French), also reported on the opening of a “procédure de faillite” and the sharp decline in share price.
Timeline of the Case (Brief Overview)
- 07 December 2022 — Ferrexpo Poltava Mining receives a claim from FC Maxi Capital Group for UAH 4.727 billion under disputed surety agreements by which the creditor asserts FPM guaranteed the obligations of Bank “Finance and Credit” under certain loan agreements.
- 26 January 2024 — A Ukrainian appellate court upholds claims against FPM totaling UAH 4.727 billion.
- 30 January 2024 — FPM files a cassation appeal with the Supreme Court challenging the appellate decision.
- 01 April 2024 — The Supreme Court suspends potential enforcement of the appellate ruling pending review.
- 09 May 2025 — Maxi Capital Group files an application to initiate bankruptcy proceedings against FPM, citing the same UAH 4.727 billion claim under the surety agreements.
- 14 May 2025 — The Commercial Court of the Poltava Region accepts the application for consideration and schedules a preparatory hearing for 27 May 2025, which was subsequently postponed multiple times.
- 24–25 February 2026 — The court of first instance opens bankruptcy proceedings against FPM and appoints an insolvency manager. Ferrexpo states it will appeal the ruling; however, according to Reuters, the appeal does not suspend the bankruptcy procedure.
Potential Implications
1) Risk of Control Over the Asset Through Bankruptcy Proceedings
Under Ukrainian practice, the opening of bankruptcy proceedings triggers formal stages, including a moratorium or restrictions, formation of a creditors’ register, supervision of operations, and potential scenarios of restructuring or liquidation depending on court decisions and creditor positions.
2) Proceedings Occur Amid a Broader Legal Front for Ferrexpo in Ukraine
In 2025, Ferrexpo reported a civil claim of UAH 157 billion (approximately $3.8 billion) against its Ukrainian structure related to alleged issues concerning extraction and operations. In February 2026, Ferrexpo also published updates regarding procedural decisions in Ukraine related to accounts and actions by authorities, as part of a broader dispute with state institutions.
3) Operational Risks Linked to Energy Infrastructure and the War
Separately, in January 2026, Ukrainian media reported stoppages and operational restrictions at Ferrexpo’s assets in the Poltava region due to damage to energy infrastructure.
