News October 2009

The newspaper "Investgazeta" No. 41, dated October 19, published an article "To settle the debts" (author - Igor Goshovskiy), in which the author made some errors, which fact may let the readers to make some incorrect assumptions with respect to solvency of the companies of UkrAVTO Group. In view of that we declare that nowadays CJSC "Zaporizhia Automobile Building Plant", as well as other companies of the Group, in spite of severe financial crisis, are financially stable, they timely service the credit portfolio and therefore they don't have any grounds to conduct negotiations about restructuring of the syndicated facility and other loans.  

 In particular, the article incorrectly reflected the information about the amount of money to be repaid by CJSC "ZAZ" by the end of the year. As of today the current debt of CJSC "ZAZ" under syndicated credit facility amounts to 15.625 mln. USD, which will be repaid on the 18^th of November, 2009, and 7 mln. USD under CLN (the article indicated incorrect information: 63 mln. USD under the syndicated credit facility and 7 mln. USD under Eurobonds, which the company has never placed).

 The article also stated incorrect information related to arrangers of issuing the Eurobonds by CJSC "ZAZ": neither "VTB Capital", nor HSBC were the arrangers of issuing the company's Eurobonds, moreover: CJSC "ZAZ" has never issued the Eurobonds, obviously, the matter concerns issuing of CLN. The abovementioned companies also were not the arrangers of issuing CLN by CJSC "ZAZ". The text of the article contains some errors in respect of servicing the issuing of CLN by the company. In summer of 2008 the period of 1,5 year passed since issuing the credit notes, and ZAZ made use of its right to buy back the CLN for the amount of 117 mln. USD.

The articles contains a reference to the head of analytical department of Investment Group "Sokrat" Konstantin Stepanov, who assumed that ZAZ "has been already negotiating about restructuring of debts". This information is inadequate and is only an assumption. Nowadays CJSC "ZAZ" is an exemplary borrower and timely services all the liabilities under credit portfolio. CJSC "ZAZ", as well as other companies of UkrAVTO Group, does not conduct any negotiations about restructuring of problem credits, because it doesn't have such. Profit of CJSC "ZAZ" upon the results of the first half-year made up 21.8 mln. UAH, and EBITDA - 205.1 mln. UAH.

  About UkrAVTO Corporation:

UkrAVTO Corporation is a leader of the car market in Ukraine. It has the widest sales and service network in Ukraine, as well as dealer centers in Poland, Russia and other countries. Owing to implementation of up-to-date business methods, advanced processes for diagnostics, production and repair of cars, the Corporation ensures stability and reliability for its numerous clients and partners.

 UkrAVTO is the biggest car manufacture in Ukraine and Poland, distributor and provider of services. On the credit side of UkrAVTO there is a successful long-lasting cooperation with Daimler AG, Chrysler LLC, Opel, KIA, Nissan, Toyota, Chery and AvtoVAZ.

For additional information about UkrAVTO Corporation visit our site: www.ukrauto.ua.