Update regarding Ukrainian subsidiary

Ferrexpo plc (LSE: FXPO) provides an update on proceedings against the Group's subsidiary Ferrexpo Poltava Mining ("FPM") in Ukraine.

On 14 May 2025 the Commercial Court of Poltava region (the "court") accepted for consideration an application from 'LLC "Financial Company" "Maxi Capital Group"' ("Maxi Capital") to open bankruptcy proceedings of FPM. Maxi Capital filed such application on 9 May 2025 in connection with the contested sureties claim (see further background on the claim below). The court accepted this application for consideration and scheduled a preparatory court hearing for 27 May 2025, which was rescheduled several times by the judge.

Today, the Company regrets to announce that a local court of first instance in Ukraine ruled to open bankruptcy proceedings against FPM. As part of this ruling, the court has appointed an insolvency manager.

The legal dispute over the contested sureties between FPM and LLC "Maxi Capital Group" is still under review by the Supreme Court of Ukraine. Therefore, a local court in Poltava opened bankruptcy proceedings without a final decision by the Supreme Court on the main litigation having been made and notwithstanding the decision of the Supreme Court dated 1 April 2024 to suspend possible enforcement against FPM.

Following the official publication of the FPM's bankruptcy announcement, the insolvency manager will start compiling a list of creditor claims in accordance with the relevant Ukrainian regulations. The existing FPM management team will remain in place and continue to operate the business during this period. FPM will file an appeal against the court's ruling within the statutory 10-day period. However, the filing of an appeal does not suspend the ongoing bankruptcy proceedings.

In the meantime, it is currently not possible to assess the potential impact of such bankruptcy proceedings and their timing, as these depend on further court proceedings, which may extend over a considerable period of time. The Company will continue to assess this development and will make further announcements as and when appropriate.

Contested Sureties claim, background

On 7 December 2022, FPM received a UAH4,727 million claim from Maxi Capital in respect of contested sureties under which Maxi Capital alleges that FPM guaranteed the performance of obligations by Bank Finance & Credit under certain loan agreements. Bank Finance & Credit is undergoing a liquidation process after having been declared insolvent by the National Bank of Ukraine and put under temporary administration on 18 September 2015.

As Ferrexpo previously announced, on 26 January 2024, a Ukrainian court of appeal confirmed the UAH4,727 million claim against FPM (approximately US$124 million at that time). On 30 January 2024, FPM filed an appeal to the Supreme Court of Ukraine, and on 1 April 2024, the Supreme Court of Ukraine suspended the possible enforcement of the decision of the Ukrainian court of appeal. Enforcement procedures therefore cannot be initiated by Maxi Capital pending a final decision by the Supreme Court, or the Supreme Court's suspension order otherwise being lifted. Although the Group's management is of the opinion that this claim is without merit, the Group recorded a full provision in the amount of UAH4,727 million (approximately US$113.5 million as at 30 June 2025) in its FY23 financial accounts, and this provision was retained in the FY24 financial accounts and the interim results for six months ended 30 June 2025, considering the magnitude of this specific claim and the risks associated with the judicial system in Ukraine.