Main points
- Ferrexpo has declared bankruptcy and is urgently seeking $100 million to stabilize the situation.
- The company plans to place new shares to raise funds, which will allow it to operate in a “low-key mode” for the next 18 months.
Ferrexpo is on the verge, so it is urgently looking for at least $100 million / Getty Images
Mining company Ferrexpo has declared a risk of bankruptcy, as as of April 17 it had a net cash position of only $17 million. Against this background, the board of directors directly states: without urgently raising at least $100 million, the company risks putting shareholders' investments at risk.
What is known about the money problems at Ferrexpo?
Currently, increasing share capital is actually the only realistic option to quickly stabilize the situation and solve financial problems, Ferrexpo reported.
The company plans to conduct a conditional offering of new shares to existing and potential institutional investors. The goal is to raise at least $100 million to support working capital and cover short-term operating expenses. This will allow it to operate in a “moderate mode” for approximately the next 18 months.
The process is expected to be completed by April 30, 2026. This is necessary so that the company can publish audited financial statements for 2025.
- Separately, negotiations are ongoing with the largest shareholder, Fevamotinico Sarl, which belongs to Konstantin Zhevago and owns almost 49.32% of the shares.
- Whether the decision on additional capitalization will be supported at the general meeting depends largely on his position.
Amid the news, Ferrexpo shares plunged 11.91% in early trading on Wednesday. The company's market capitalization is currently estimated at around £258.2 million.
The Board of Directors warns: if it is not possible to launch fundraising and complete the formation of the order book by the end of April, trading in shares may be suspended as early as May 1, 2026.
In this case, the company's shares will remain “frozen” until the audit is completed and the annual report is published. And even then, there is no guarantee that trading will resume quickly.
What is known about Konstantin Zhevago?
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Last year, the High Court of England and Wales froze the assets of Konstantin Zhevago due to a debt to the NBU of over 1.5 billion hryvnias, according to a 2019 decision by a Ukrainian court.
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Kostyantyn Zhevago signed a surety agreement with the NBU in 2015, but systematically failed to pay the debt, which led to the involvement of an English court to collect the debt.
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By the way, the owner of Smart Holding Group Vadym Novinsky and the executive director of Ferrexpo, the former owner of the bank “Finance and Credit” Konstantin Zhevago, again entered the ranking of the richest people in the world in 2025. His fortune has not changed over the year – he has a capital of $1.2 billion.