Ukrgasbank will make with the hotels “Premier Palace” and “Dniester” deal of 1.1 billion hryvnia

The Supervisory Board of PJSC “Hotel “Premier Palace” (Kiev) has provided consent to the conclusion of the mortgage contract with the state Bank in the amount of 979,51 million.

According to the CHAO in the system of information disclosure Natskomisii on securities and stock market (NKTSBFR), the decision taken at the General meeting of shareholders 29 November 2017.

As indicated in the message, the amount of the mortgage contract is 168% of the value of the assets of the hotel “Premier Palace”.

In addition, CHAO Tourist hotel complex “Dnister” (Kyiv) reported in the information disclosure system NSSMC on the Supervisory Board’s decision of November 29, 2017 to approve the conclusion of Ukrgasbank General credit agreement in the amount of UAH 130 million, which is 60.8% of the assets of CHAO.

According to the annual report of hotel “Premier Palace”, on 1 February 2017 was the deadline of the loan agreement №37ВД dated 20 July 2007 entered into with VTB Bank (Ukraine).

As of December 31, 2016 payable on the loan totaled $55 million or 1.5 billion UAH according to NBU rate at the reporting date.

Under the terms of the contract, in case of untimely repayment of principal, the borrower must pay the lender a penalty fee of 30% per annum of the overdue amount.

According to the Unified state register of court decisions, in June 2017, the hotel “Premier Palace” appealed to the Kyiv economic court with the claim against “VTB Bank” with the requirement to amend the relevant loan agreement.

The hotel, in particular, requested to extend the contract, to postpone the payment of interest, and leave interest rate at 0.1% per annum, but the creditor has not signed the draft agreement.

The decision of economic court of 13 June 2017, the hotel denied the claim.

Not agreeing with this decision, “Premier Palace” appealed in July 2017 at the Kyiv appeal economic court with the appeal and a request to satisfy the claim.

According to the decree of August 23, 2017, the Kiev appeal economic court left without satisfaction the appeal of the hotel.

The hotel “Premier Palace” was registered in 2004 and is part of the hotel chain Premier Hotels and Resorts under the management of LLC “Premier international” (Kiev). Company as the hotel operator within the network centralizes and manages 18 hotels 2-5 stars under the brands of Premier Palace hotel, Premier Hotels, Premier Hotels Compass in 13 settlements of Ukraine.

JSC “Hotel “Premier Palace” in 2016, decreased net profit by three times compared to 2015 year — on-year to 193 million.

As of the second quarter of 2017, the main shareholders of PJSC are Pumori Enterprises Investments Ltd. (62%, Cyprus) and Ukrainian OOO “Eastern European hotel company” (12,7%) and JSC “Hotel complex “Rus” (16% as “Premier Palace” is a network of Premier Hotels and Resorts).

JSB “Ukrgasbank” established in 1993 and as of January 1, 2017, the state represented by the Ministry of Finance owned 94,9% of its shares.

According to NBU, July 1, 2017, the Bank in terms of assets occupied 4-e a place (65,709 billion UAH) among 88 operating in the country banks.

The net profit of Ukrgasbank in January-September of 2017 amounted to $ 250 million, which is 2.1 times more than in the corresponding period of 2016 (116, UAH 63 million).