American and Cypriot courts have ruled in favor of Ukrainian businessman Oleg Bakhmatyuk, dismissing claims by the American fund Gramercy Funds Management against the agricultural company Ukrlandfarming, one of the largest agricultural companies in Ukraine.
Gramercy Funds Management filed a lawsuit in US federal court against Oleg Bakhmatyuk and several others on December 7, 2022, alleging violations of their rights as investors. Separate legal proceedings have also been initiated in Cyprus.
As Ukrlandfarming reports in its press release, the lawsuit in the US was dismissed. The proceedings in Cyprus were also terminated.
"Currently, all claims by Gramercy Funds Management against the owner of Ukrlandfarming have been officially dismissed in full, the lawsuits in both the US and Cyprus have been completely terminated, and the parties have reached a settlement agreement. The creditors who initiated the lawsuit are dropping their claims without the right to resubmit after reaching an agreement on the settlement of the claims," Ukrlandfarming said in a press release.
Oleg Bakhmatyuk considers this agreement a victory. In particular, because "it will help our company, which lost about half of its assets due to Russia's invasion of Ukraine. The agreement could be a milestone that will help save the company, setting the tone for future negotiations with creditors. This is very beneficial for all parties.".
Ukrlandfarming is one of the largest agricultural holdings in Ukraine. The holding continues to operate despite the losses caused by the Russian invasion, which the company estimates at about $1.2 billion. In particular, the largest poultry farm in Europe, Chornobayvska (Kherson region), was actually destroyed, where 4.5 million birds died, and the equipment was taken to the Russian Federation.
