Event: Kharkiv economic court initiated the reorganization of Kupyanskiy Sugar Plant, which is owned by Ukrros, Interfax reported July 26. According to the news agency, the court decision was made on July 14.

Impact: The news is neutral for Ukrros.

Rationale: We regard this news as neutral for the company as the plant didn’t operate last year due to a lack of sugar beet in the region. Besides, Ukrros had considered disposing of the plant back in 2009. According to the court’s resolution, reorganization of the plant will last for one year, and the appointed manager is obliged to present a reorganization plan for consideration of the Creditor’s Committee within three months. In any case, Ukrros will postpone repayment of part of its payables and may write off part of its liabilities.

Tags: Consumer Goods, Ukrros