Chairman of the Board of PJSC Ukrnafta Mark Rollins as authorized by the Supervisory Board sent to the State Fiscal Service of Ukraine (SFS) new proposals for financial recovery of the company through rehabilitation procedure.
The new financial rehabilitation plan envisages repayment of the company’s tax debt using solely revenues from operations, which should help avoid some of the obstacles that led to non-approval of the previous rehabilitation plan in 2016.
The company’s proposals envisage that:
• Tax debt in terms of tax liabilities (of all state taxes and fees) will be rescheduled and subject to repayment within the next 3 years from the effective date of court approval of rehabilitation procedure;
• Ukrnafta will be paying both tax liabilities included in the rehabilitation plan and current liabilities while implementing the plan.
At the same time, the company invites to consider writing off the tax debt in terms of penalties and fines, given the long-standing problem of debt of state-owned companies NAK Naftogas Ukrainy and PJSC Ukrntransgas before Ukrnafta for 2 bln m3 of natural gas produced in 2006. Also, a necessary condition for the fulfillment of this plan is that all of the existing production licenses will be extended by the State Service of Geology and Mineral Resources in accordance with the law.
According to the schedule of tax debt repayment, half of the debt will be paid off by the end of 2018, while the remainder will be paid off within the following 2 years.
Ukrnafta is looking to confirm with the SFS the possibility of approval of these proposals, since the tax authority holds over 50% of the company’s accounts payable and the rehabilitation procedure cannot be implemented without its consent, according to the letter sent by Chairman of the Board of PJSC Ukrnafta to SFS Acting Director Myroslav Prodan on 11 May 2017.
«The [issue] of restructuring of the tax debt of PJSC Ukrnafta cannon be solved without active cooperation with the State Fiscal Service. Delays in finding constructive solutions will only aggravate the already difficult financial situation of the company», – said Chairman of the Board Mark Rollins in his letter.
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