Uralchem is concerned about the Tomet’s bankruptcy
Uralchem expressed serious concern about the suspension of the Tomet enterprise and the possible bankruptcy of the company.
Tomet owns an ammonia unit and the methanol production complex. Until 2005, the company was part of Togliattiazot, then it was transferred to Tomet, owned by the Hong Kong offshore company Triumph Development, which is controlled by one of the beneficiaries of Togliattiazot and Swiss businessman Andrew Zivy.
On November 26, 2019, the Court of the city of Togliatti declared beneficiary owners of Togliattiazot Vladimir and Sergey Makhlai, as well as Andrew Zivy, guilty of large-scale fraud. They are obliged to compensate for the damage caused to Togliattiazot of 77.3 billion rubles (approximately $975.5 million) and to the minority shareholder Uralchem, which owns 9.97% of Togliattiazot’s shares, 10.3 billion rubles (approx. $130 million). The Court also obliged Tomet to pay the same sums on the claim filed by Uralchem in the frame of this case.
On September 21, 2020, Togliattiazot initiated the bankruptcy procedure of Tomet. Later, Uralchem had to join the Tomet bankruptcy litigation as one of its claimants. The accounts of Tomet were arrested as part of the recovery proceedings.
The management of Tomet declares that the enterprise cannot operate without access to the current accounts, therefore the company has been suspended.
Uralchem, in turn, is interested in the stable operation of debtor enterprise. However, there is a danger that the company will be burdened with significant accounts payable, which will make it difficult for Uralchem to recover the debt in the future.
Uralchem announced that the company is not interested in bankruptcy and the suspension of the production of Tomet. In this regard, Uralchem will be ready to withdraw the writ execution against Tomet, if the company secures its obligations by a pledge of the debtor’s property, and if a bankruptcy petition filed by Togliattiazot is declined as well.
These proposals were announced on October 30 at a meeting at the Ministry of Industry and Trade of Russia with the participation of representatives of Uralchem, Togliattiazot and Tomet.