Type public company Website mriya.ua Founded 1992 | Number of employees 2,700 Headquarters Cyprus | |
 | ||
Key people Simon Cherniavsky – General Director
Ton Huls – Chief Financial Officer
Victor Kuharchuk – Chief Operating Officer Products Wheat, sunflower, soybeans, potatoes, rapeseed, corn, barley, buckwheat, mustard, peas CEO Vladyslav Lugovskiy (Sep 2014–) Subsidiaries Sinokis LLC, Vechirnya Zorya LLC | ||
Mriya agro holding
“MRIYA Agro Holding” is one of the largest agroindustrial companies in Ukraine. “MRIYA Agro Holding” was founded in 1992. Today, “MRIYA” cultivates approximately 180,000 hectares of land in Ternopil, Khmelnitskyi, Ivano-Frankivsk, Chernivtsi, Lviv, and Rivne regions. The Agro Holding grows wheat, potatoes, rapeseed, corn, sunflower, soybeans, barley, and sorghum.
Contents
- Mriya agro holding
- Name of the company
- Corporate management
- 19921995 Early years
- 19961999 Implementation of advanced technologies
- 20002006 Further development
- 20072009 Infrastructure development
- 20102011 International cooperation and further infrastructure development
- 2012 2013 Attracting capital from international markets investing into production facilities research and supporting local communities
- 2014 Technical default
- 2015 New management Debt restructuring
- Business activities
- Land resource management
- Planning and cultivation
- Infrastructure and logistics
- Social Responsibility
- References
The Company is a vertically integrated agroindustrial holding. The structure of the holding allows it to effectively manage the entire supply chain. “MRIYA Agro Holding” has its own seed production – a seed plant with capacity of 300 tons per day as well as over 2,500 units of agricultural and logistics equipment. The Company manages elevator complexes and granaries with a total storage capacity of about 600,000 tons, potato storage facilities with capacity of around 100,000 tons, as well as modern logistics centers.
The products of “MRIYA Agro Holding” are supplied to more than 20 countries worldwide, including Europe’s largest food companies.
In 2008-2014, the Company was listed on the Frankfurt Stock Exchange.
In August 2014, the Company failed to pay its creditors and announced a technical default.
Starting February 2015, control over the Company’s assets was transferred to the creditors – primarily European and American investors – who decided to preserve the Agro Holding and to appoint a new management team. New management of “MRIYA” consists of General Director Simon Cherniavsky, CFO Ton Huls, and COO Victor Kuharchuk.
Name of the company
Name of the company, “MRIYA” translates to English as “Dream”
Corporate management
1992–1995: Early years
"MRIYA" was founded on April 17, 1992 by Ivan and Klavdiya Guta. The company began as a farming research and production enterprise and received land from the State Reserve Fund of Ternopil region. The total arable land amounted to 50 hectares.
In 1994, the Company expands its land bank to 150 ha and begins cooperation with American experts in order to acquire its first international experience in agriculture.
In 1995, the Company implements advanced potato cultivation technologies and in the same year upgrades potato storage facilities located in Vasylkivtsi village, Ternopil region. Eventually, all potato storage facilities are equipped with temperature and humidity control systems as well as sorting lines.
1996–1999: Implementation of advanced technologies
Starting 1996, the Company invests in modern agricultural equipment; in 1996 it makes first purchases of equipment produced by John Deere and Grimme.
1997-1998: "MRIYA" expands its land bank to more than 1,000 ha. The company pays special attention to developing infrastructure; the first silo with capacity of 3,500 tons is built in Gusyatyn region.
1998-1999: "MRIYA" launches strategic partnership with “Ukrayinska Mova” company (later acquired by Kraft Foods) to supply potatoes for production of potato chips. The Company also signs an agreement with Slavuta Malt Plant (part of Soufflet Group starting 2003) to supply high quality barley for malt production.
2000–2006: Further development
2001: The Company launches its own school for agronomists to invest in professional development of its employees and introduce experience exchange with international experts. “MRIYA” also creates its own equipment fleet consisting of large vehicles produced by world’s leading automotive companies.
2002-2006: The Company destroys its management team with Andriy and Mykola Guta, sons of the founders of “MRIYA”. Construction of a second elevator in Gusyatyn begins; the Company’s land bank grows to 10,000 ha. Long-term partnership with Europe’s leading agricultural consulting company Velcourt is launched.
2007–2009: Infrastructure development
2007: The Company’s land bank amounts to 91,000 ha.
2008: “MRIYA” expands its land resources to 150,000 ha. Gusyatyn elevator’s capacity is further increased to 77,000 tons. The Company conducts a private placement of 20% of its shares on the Frankfurt Stock Exchange.
2009: The Company completes the first stage of construction of an elevator with a storage capacity of 60,000 tons. Seed production and treatment facility with a production capacity of 300 tons per day is launched. Land bank is
expanded to 201,000 ha.
2010–2011: International cooperation and further infrastructure development
2010: “MRIYA” receives a credit loan from International Finance Corporation (IFC). GPS monitoring of equipment is introduced. A large potato storage complex is built.
2011: The Company expands its land bank to 240,000 ha and issues $250 million of Eurobonds. “MRIYA” also establishes the “Ukrainian Agrarian School”, an education center aiming to teach world’s best standards in agriculture to future agronomists and to give them practical experience of working at modern production facilities of Ukraine’s leading agricultural company, “MRIYA Agro Holding”
2012-2013: Attracting capital from international markets, investing into production facilities, research, and supporting local communities
In 2012, “MRIYA Agro Holding” expands its land bank to 298,000 hectares, its grain and oilseeds storage capacity to 820,000 tons, and its potato storage capacity to 116,000 tons. The Company also begins processing potato waste into starch.
In 2013, the Company issues $400 million worth of Eurobonds. Mechanic School, Ukrainian Accounting School, and Agro MBA are established.
2014: Technical default
In August 2014, “MRIYA” announces a technical default. The Company’s debt amounts to USD 1.3 billion.
2015: New management. Debt restructuring
In January 2015, creditors of “MRIYA” hold negotiations to select new management for the Agro Holding.
The creditors are represented by two committees, one of which represents the interests of bondholders – around 50% of bonds to be repaid in 2016 and 2018 – and the other representing the interests of banks (who hold 60% of the Group’s total debt to banks). Both creditor committees, which account for the bulk of “MRIYA’s” debt arrears hire legal advisors (Cadwalader and Avellum representing bondholders; Latham & Watkins and Arzinger representing banks) as well as a consortium of financial advisors consisting of Rothschild, ICU and FinPoint. The aforementioned committees were formed in response to the Company’s statement on August 1, 2014, which urged the creditors to unite.
The creditors select Simon Cherniavsky, former General Director of “HarvEast” agro holding, as the new General Director; Ton Huls as the CFO; and Viktor Kukharchuk as the COO.
In June 2015, “MRIYA Agro Holding” manages to replenish its working capital by securing a USD 25 million credit line, which was opened by the current creditors for 6 months. The funds will be directed to financing the harvest as well as the fall sowing.
The Company is currently modernizing its equipment fleet; disc harrows, seeders, harvesters, trailers, and light vehicles for a total sum of USD 2.5 million have been purchased.
In addition, in May the Agro Holding has renewed cooperation with “OTP Leasing” and returned the confiscated equipment worth USD 2.8 million.
Business activities
Key assets and activities of “MRIYA” are connected to agricultural production. The Company has a vertically integrated structure, which allows it to effectively manage the entire supply chain.
Land resource management
Land resource management is focused on unlocking the full potential in Ukrainian agribusiness and using all advantages of black soil in Western Ukraine.
Planning and cultivation
Infrastructure and logistics
Social Responsibility
“MRIYA Agro Holding” is a socially responsible company. It implements a number of public projects in areas of operation – upon consent and decision of local communities.
In 2015, “MRIYA’s” budget for social investment amounts to UAH 22 million to be allocated according to the pre-agreed procedure. The Agro Holding will provide UAH 100 per hectare of land, to be allocated as follows:
To administer this social investment program, “MRIYA Agro Holding” has created a charity fund, which implements all social projects in medicine, education, culture, public services, sports, rural infrastructure, assistance to religious communities, and support of the ATO.