Today, the Supervisory Board meeting of Ukrnafta PJSC (further referred to as the Company or Ukrnafta) took place in the head office of Naftogaz of Ukraine.
The Supervisory Board has recognized the presence of insolvency signs in Ukrnafta and the need to take steps for the Company's financial recovery and re-establishing of its solvency.
More specifically, it has been resolved at the meeting to prepare and initiate the procedure of Ukrnafta's pre-judicial recovery.
The Supervisory Board has instructed Mark Rollins, CEO of Ukrnafta, to negotiate with the State Fiscal Service of Ukraine and find out the tax authorities' viewpoint as to the possible options for re-paying the Company's tax debts, in particular, debt restructuring within the pre-judicial recovery The Supervisory Board has also instructed CEO of Ukrnafta to provide all the Supervisory Board members with the Company's IFRS consolidated financial statements for 2015 confirmed by Ukrnafta's independent auditor (PricewaterhouseCoopers Audit LLC).
At the next meeting scheduled for 7 June 2016, the Board intends to consider the Company's consolidated statements, with the obligatory participation of the independent auditor's representative.
The Supervisory Board has committed the Management Board to provide complete information and written clarifications with regard to transactions on crude oil sale and pre-payments for oil products in 2015 where Ukrnafta's auditor failed to receive sufficient and acceptable audit evidence.
The Management Board has also been tasked with selecting, on a tender basis, one of widely recognized audit firms for performing the Forensic Audit of certain business transactions for crude oil sale and pre-payments for oil products in 2015.
Beyond that, the CEO of the Company now has the obligation to furnish the Supervisory Board with documents containing the full list and analysis of the Company's creditors.
The General Shareholders' Meeting of the Company is appointed to take place on 7 July 2016. On the agenda of the General Shareholders' Meeting is, in particular, consideration of the reports by the Company's Management Board and Supervisory Board for 2015, as well as the report and opinion by the Company’s Revision Commission.
Additionally, the meeting is supposed to elect new memberships of the Supervisory Board and the Revision Commission and to approve initiation and the basic terms of the Company's pre-judicial recovery procedure.