Sintal Agriculture filed for bankruptcy

22.01.2014

According to the official information released by Kharkiv District Court, bankruptcy proceedings have been initiated against holding company of Sintal Agriculture holding. The case was filed on January 8, 2014 and was made public only recently. Holding company of the group is “Nauchno-proizvodstvennaya firma “Sintal D”, as creditors’ claims will be accepted on the account of the company until February 20, 2014.

As noted by financial analyst of UkrAgroConsult, Alex Morgun, company has not published financial reports since 2010, as the latest update regarding the company is dated as of December 17, 2012. “Company’s share price and market capitalization accordingly fell by 4 times over 2013, - mentions Mr. Morgun – the most recent bankruptcy claim led to seven-fold share price decline over January 10, 2014 trading session: from EUR 0.07 to EUR 0.01 per share.” Company also switched stock exchange in the end of 2012, moving from Frankfurt to Vienna, stock exchange with fewer requirements regarding its participants. Due to the fact that the information regarding the company was scarce, we can only speculate on the reasons that led to bankruptcy. These most likely included poor management, combined with unfavorable weather conditions during 2011-2012 season and decline in commodity prices during 2012-2013 season.

 

 

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