Ario Law Firm Advises Ukravtozapchastyna on Restructuring UAH 261 Million Debt

Ario Law Firm has successfully advised Ukravtozapchastyna LLC, a Ukrainian manufacturer and supplier of spare parts for military and civilian heavy-duty vehicles, on the restructuring of its UAH 261 million debt.

The Ario team was led by Managing Partner Oleksii Voronko and included Counsel Mykola Sokolov, Counsel Serhii Derkach and Associate Serhii Bukhalenkov.

Against a challenging economic backdrop, the company faced difficulties in meeting its financial obligations under debt owed to a commercial bank that had been declared insolvent and subsequently liquidated. The debt was later acquired by a financial company.

Ario provided comprehensive legal support in preparing and negotiating a memorandum with the financial company on the restructuring and subsequent performance of the debtor’s financial obligations.

The first stage of the strategy involved due diligence and corporate restructuring of the client’s group of companies. The second stage included the partial sale of real estate assets and the restructuring of the remaining debt on mutually acceptable terms. This enabled Ukravtozapchastyna LLC to preserve its key production facilities and continue fulfilling, among other things, defence-related orders.

“Negotiations with the financial company lasted for more than a year and required a high level of diplomacy. Our main objective was to find a compromise that would not only address the debt burden, but also preserve a business that is important for the country,” said Oleksii Voronko, Managing Partner at Ario Law Firm.

Mykola Sokolov, Counsel at Ario, added: “This matter is a clear example of how mediation and constructive dialogue can help businesses overcome complex financial crises. Most importantly, it helped preserve the business, which is critically important for the national economy in the current environment.”