Americans take control of grain terminal in Odesa port

American investment funds Argentem Creek Partners and Innovatus Capital Partners have gained control of the Olimpex grain terminal in the port of Odesa.

The Zelenskiy administration recently helped two American funds collect a $95 million debt from Odesa tycoons who previously owned the terminal and defaulted on loans, and who allegedly misrepresented grain that was supposed to be collateral, the Financial Times reports.

Earlier, the funds won an international arbitration for $150 million and several cases in the UK courts, but for a long time could not achieve recognition in Ukraine. The turning point came after the arrest of businessman Volodymyr Naumenko in May and the Supreme Court's decision in July.

Prosecutors allege that GNT, the group owned by Volodymyr Naumenko, defrauded Innovatus of a $20 million loan, in part through a scheme that misrepresented the availability of grain as collateral and then faked the destruction of the allegedly spoiled product in the months after Russia's invasion.

Argentem Creek management plans to launch the terminal this summer, possibly in September. Harvesting is currently underway, so the launch of the facility is extremely important for exports.

In April 2024, the Western Commercial Court of Appeal in Lviv on Thursday rejected a petition by shareholders of Olimpex Coupe International, part of GN Terminal Enterprises, to dismiss the appointment of independent bankruptcy managers.

Earlier in 2023, the District Court of Nicosia (Cyprus) issued an order prohibiting the creditor, the American hedge fund Argentem Creek Partners (ACP), from selling the grain terminal in the Odesa Commercial Sea Port, which belongs to GNT Group.

On February 6 of the same year, the creditors of Argentem Creek Partners ("ACP") and Innovatus Capital Partners ("Innovatus") initiated bankruptcy proceedings against Olimpex Coupe International, a subsidiary of GNT Group that operates the grain terminal in Odesa.

According to GNT Group, the company took out a $75 million loan from Argentem Creek Partners in 2019 secured by the company's corporate rights, which were worth several times more than the loan. Due to the war with Russia, repayment of the loan became more difficult. But with the launch of the grain corridor, it became possible to settle the loan.

GNT Group argued that it had repeatedly declared its readiness to repay the debt in any civilized way. The lender categorically refused to negotiate with GNT Group. Instead, it initiated enforcement proceedings with elements of a corporate raid.

Кирило Бойко