Kernel bankrupt? Verevskiy withdraws assets
Andrey Verevskiy, the primary owner and Chairman of the Board of Directors of the agricultural company Kernel, changes the ownership of the company's valuable assets. These actions might show that the company is getting ready for bankruptcy.
Orest Sokhar, the chief editor of OBOZREVATEL, mentioned in his Orestocracy Telegram channel that Kernel has delayed the release of the overall financial report for the year three times.
“There are several reasons, but the most important thing is that the agricultural holding seems to be preparing for bankruptcy. After all, a few months after the start of a full-scale war, Verevsky held an insider agreement (non-transparent re-registration from one of his companies to another using non-public data) and actually withdrew 134 thousand hectares of land in the Ivano-Frankivsk and Lviv regions from Kernel, which did not fall under the risk of Russian occupation,” the message says.
In other words, Verevsky himself acquired corporate rights from legal entities that possess 134 thousand hectares of land. He had to pay $210 million for the assets, even though the actual price is higher.
Orest Sokhar points out that Verevsky's actions could lead to Kernel's bankruptcy. If the Warsaw Stock Exchange stops trading Kernel shares due to various violations, the company could be close to bankruptcy.
The assets that have been transferred to Verevsky cannot be given to creditors and investors. If the assets are taken from Kernel due to legal action, Verevsky will still keep the 134,000 hectares of land.
Is Kernel bankrupt?
A significant delay in the release of an audit report typically happens in two scenarios:
- new conditions have emerged which were previously unknown;
- the results were so disappointing that more time is needed to persuade one of the big four auditors to write the document accurately.
And postponing the report three times is unacceptable for a public company. “Kernel really had big problems. They can be assessed as “almost bankruptcy”. Net debt has risen to $1.7 billion, inventories have fallen by 13%, and companies are refusing new loans. And because of the actions of Verevskaya, the shares fell by more than 60%, while for similar businesses in war conditions – by 20-40%. Independent managers with an impeccable reputation are fleeing the board of directors, who must protect the interests of minority shareholders. There were three of them, and all of them almost simultaneously left the company of their own free will,” emphasizes Orest Sohar.
Kernel is one of the largest agricultural holdings in Ukraine, the bankruptcy of which will affect the state’s economy. In addition, the situation will affect the mood of foreign investors, in particular, their desire to invest in the development of Ukraine after the end of the war.
For more information about what is happening at Kernel and what such investigations can lead to, — read soon on OBOZREVATEL.
Remember that previously Verevsky also acquired a pool of oilseed assets from the bankrupt Delta Bank. The value of the assets is estimated at UAH 5 billion. These include two fat-and-oil plants with all capacities, as well as a counterparty company.
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