Deposit Guarantee Fund accuses ex-shareholder of Megabank Subotin of refusing to repay UAH 2.

The majority shareholder of Megabank (Kharkiv), Viktor Subotin, is not fulfilling his obligations to the bank regarding loans issued to his group of companies before its withdrawal from the market. The outstanding debt now exceeds UAH 2.3 billion, as stated by the Deposit Guarantee Fund.

The fund has called on related debtor entities to immediately resume compliance with their obligations.

"Official appeals from Megabank to borrowers regarding the necessity of paying funds toward the repayment of credit obligations under contracts concluded with the bank are being ignored. All these actions indicate a deliberate evasion of financial responsibilities," the Fund said in a press release on its website.

The loans were granted to a group of companies in which Subotin or members of his family are beneficiaries.

According to the Fund's information, the debtors are neither servicing the principal obligations nor paying interest on the use of credit funds, which continues to cause losses to Megabank.

"Moreover, instead of repaying their debts, these borrowers, taking advantage of the situation in the country, are attempting to withdraw liquid collateral through court proceedings by refusing further compliance with obligations under mortgage agreements and canceling encumbrances. This will deprive Megabank, as a creditor, of the opportunity to satisfy its claims from pledged property or, in the case of selling these loans, significantly reduce the cash inflows that should be directed toward satisfying creditors' demands," the Fund said.

The Deposit Guarantee Fund reported that related debtor entities associated with the financial institution are not approaching Megabank to discuss the restructuring of their debts.

Refusing to service the debt in the insolvent Megabank directly impacts the fulfillment of obligations to depositors and creditors, while also affecting the interests of the state, the Fund said.

As of April 1, 2024, the outstanding amount of accepted creditor claims against Megabank reached UAH 7.44 billion, out of which UAH 3.52 billion represents the Deposit Guarantee Fund's claims resulting from guaranteed compensation payments to depositors and in connection with the bank's liquidation procedure.

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