ONE OF THE LARGEST CONFECTIONERY FACTORIES IN UKRAINE DECLARED BANKRUPT

Formally, the company was declared insolvent due to the fact that debts turned out to be more than the assets, and the company was not able to satisfy the appetites of creditors. However, as stated by the press service of the company itself, the reason for the bankruptcy was the military conflict in the east of Ukraine. Because of it, both factories in Donetsk and Lugansk, which were under the management of the holding until 2014, turned out to be located on the uncontrolled territory and soon stopped working.

The AVK holding has been operating in Ukraine since 1991.

For a long time, the company had held a leading position in the Ukrainian market for the sale and export of chocolate candies in bulk. The holding operated 4 factories. Two of them (in Luhansk and Donetsk) stopped working in 2014-2015. The court of Transcarpathia seized the factory in Mukachevo from the corporation in connection with the debt to Oschadbank.

In 2018, due to debts, the enterprise in Dnipro was passed to Prominvestbank, which is owned by the Russian Vnesheconombank. The reason was the debt of 1.37 billion hryvnia. At the moment, the company’s property has been arrested and put up for auction.

The ultimate beneficiaries of the AVK corporation are entrepreneurs Vladimir Avramenko and Valery Kravets. In the fall of 2016, one of them mentioned that the company was financed by the banks of the ‘occupying country’, so the negotiation process was difficult.

The total debt to creditors amounted to about $ 160 million, but it is not possible to pay it off.

It is known that until 2014, the company received about 70% of its revenues from the Russian market. In the segment of chocolate products, the company's share in the Russian market was 6%. After the authorities of the Russian Federation imposed an embargo on the supply of goods from the territory of Ukraine, AVK lost the market.