Konstantin Zhevago, the main owner of Poltava Mining and Processing Works, could lose his iron ore division – Vostok-Ruda.
In January the court received two claims from creditors demanding Vostok-Ruda to be presumed bankrupt. At first VostGOK made such a claim, and then the joint company Mekhanik.
Vostok-Ruda was founded on the basis of Novaya mine, where VostGOK mined high uranium content iron ore.
In 2004 Zhevago bought 49.4% of the company shares, and a year later his Ferrotrans bought the rest from the State Property Fund.
Vostok-Ruda mines some 1 million tons of iron ore per year.
The company started experiencing problems in 2009 when ore prices and demand fell due to the financial crisis. Vostok-Ruda halted last year.
As of now the company owes some 20 million UAH to its workers, and for electricity as well. (Ukrainian metal)