"Kyivmiskbud" will avoid bankruptcy: the company is preparing for restructuring
The holding company "Kyivmiskbud", one of the largest developers in the capital of Ukraine, has begun preparations for preventive restructuring. This was announced by the company on Friday in the information disclosure system.
Remote general meetings of shareholders are scheduled for November 15–25, during which a preventive restructuring will be initiated — a special procedure designed to prevent the insolvency of the debtor and to provide time to exit an unfavorable economic situation.
Acting Chairwoman of the Board, Svitlana Samsonova, will be granted broad powers to file an appropriate application to the court, conduct negotiations with creditors, develop a restructuring plan, and conclude necessary agreements.
In June, the shareholders of Kyivmiskbud, where 80% is owned by the territorial community of Kyiv represented by the Department of Communal Property of the Kyiv City State Administration (KCSA), decided to increase the company's authorized capital by 2.56 billion hryvnias through an additional share issue.
The placement was scheduled from October 1 to November 28, but the Kyiv City Council was only able to allocate 1.7 billion hryvnias in the budget for the company's recapitalization.
Currently, Kyivmiskbud has 24 construction sites with 122 unfinished multi-storey buildings. Construction halted after the full-scale invasion began.
Construction site stoppages were caused by adverse market factors and the decision to transfer unfinished projects from "Ukrbud" to "Kyivmiskbud". In June, work was ongoing on 10 residential complexes. By the end of December 2022, work had to be halted again due to electricity shortages and outages. After stabilizing the electricity situation, the company was able to resume construction on 5 high-completion residential complexes, but due to lack of funds, the company appealed to the Kyiv City Council, as the main shareholder, for recapitalization of "Kyivmiskbud" and the repurchase of some apartments for the city's needs.
The Kyiv City Council created a Temporary Control Commission and appointed an audit, which concluded that the company is experiencing difficulties due to the economic crisis, rather than managerial abuse. It was established that «Kyivmiskbud» «operated properly until external factors significantly affected its performance».
The Chairman of the Board and President of "Kyivmiskbud," Ihor Kushnir (who was suspended from duties during the audit), returned to work but announced his resignation in December 2023. He recalled that he had managed "Kyivmiskbud" for 12 years. Ihor Kushnir explained his decision by saying he wanted to "avoid manipulations and rumors." The leadership change only worsened the situation, and after just two years, the decision on recapitalization, which Kushnir initially proposed, reached the final stretch.
