Innovatus accuses GNT Group of USD 25 mln grain theft. Terminal insists grain was spoiled

Innovatus Capital Partners accuses GNT Group, the owner and operator of the grain port terminal Olimpex in Odesa, of committing fraud, BorgExpert reports with reference to Innovatus statement.

Since February 24, 2022, grain was stored at the facilities of the grain terminal Olimpex, which was pledged to Innovatus. The investigation revealed that the grain was looted and sold. The total amount of grain and other stocks is estimated at USD 25 mln.

"GNT's exploiting the war as a means to steal funds they do not own is appalling. Unfortunately, this type of corruption affects all Ukrainians," stated Innovatus Managing Director Ana Firmato.

GNT Group denies the accusations and claims that immediately after the outbreak of the war, on February 25, 2022, they notified Innovatus about the impossibility of ensuring the safety of grain and controlling its quality due to military risks. Thus, on May 13, 2022, the international inspection and certification company Bureau Veritas conducted an inspection of this grain and documented its spoilage.

"Moist grain in an enclosed space can be explosive if a munition hits the silo. Therefore, the terminal management decided to immediately remove the spoiled grain for disposal. It should also be noted that a similar inspection was carried out by Cotecna in February, before the outbreak of the war, which confirmed the presence of grain pledged to Innovatus at the terminal's facilities," GNT explains.

After the "grain corridor" started working, fresh consignments of grain were returned to the capacities of the Olimpex terminal.

It is reported that since early October 2022, the management of GNT Group continued negotiations on the repayment of USD 20 mln in debt to Innovatus.

However, according to GNT, the company is currently unable to complete the repayment of the debt due to blocking by another creditor — Argentem Creek Partners LP, which requires repayment of debts on Pari Passu terms.

"On December 13, 2022, GNT Group confirmed its commitment to repay the debt to Innovatus Capital Partners in communications with the fund's managing director Ana Firmato, but consent was not received from Argentem Creek Partners LP. Negotiations will continue," GNT said in a statement.

GNT Group says it is ready to make every effort to resolve this situation and hopes for an open constructive position of creditors.

Argentem Creek Partners (ACP) accuses GNT Group of misappropriating USD 75 mln loan. The terminal denies and vows to return the money.

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