Subject to bankruptcy proceedings, LLC Tomet has published a press release on the official website, which states that Triumph Development Limited (LLC Tomet owner) offered URALCHEM, JSC and other creditors to conclude an settlement agreement. According to its terms, the creditors are proposed to write off most of their claims to the debtor: of the total debt of 87.7 billion rubles, 18.46 billion rubles only will be paid over seven years to URALCHEM, JSC. The debtor proposes to write off the remaining part of the claim amounting to 69.2 billion rubles. After reviewing the draft settlement agreement, URALCHEM, JSC officially declares that such proposals are inacceptable.

The consolidated bankruptcy liabilities include not only the claim of URALCHEM, JSC, but also the claim to collect the debt in favor of Togliattiazot, PJSC. Based on a court decision, URALCHEM, JSC was charged with the right to collect debt under this claim, and pursuant to the principle of good faith, it intends to ensure the collection of the maximum possible amount of debt in favor of Togliattiazot PJSC. The proposed settlement agreement makes this impossible.

The terms of the settlement agreement imply a deferral of seven years and waiver of about 70 billion rubles of debt without any economic justification. There is no explanation of how it benefits creditors.

In addition, waiver of debt in the amount of about 70 billion rubles will not take LLC Tomet out of the insolvency situation, since after a waiver of debt in this amount, this company will have an obligation to pay a tax in the amount of 20 percent of 70 billion rubles, that is, 14 billion rubles, which the company will not be able to pay, since the assets of its balance do not exceed 11 billion rubles. Hence, such a transaction obviously cannot lead to the restoration of the debtor's solvency, but will only entail a change in the main creditor.

The draft settlement agreement does not offer any way of securing the fulfillment of the debtor's obligations: property pledge, surety, or bank guarantee. This may indicate that the other party to the settlement agreement does not intend to fulfill it actually.

The technical condition of the debtor's equipment, through the operation of which it intends to fulfill the settlement agreement, leaves much to be desired. One of the two methanol units is not operational. In the period from October 19 to November 16, 2020, an unscheduled field inspection of LLC Tomet was carried out by the Central Volga Department of Rostechnadzor, the official website of Rostekhnadzor informs. Based on the results of the inspection, Rostechnadzor brought LLC Tomet to administrative responsibility for numerous violations of industrial safety standards and temporarily suspended the operation of several production facilities of the company. All this indicates that the source of debt repayment is extremely unreliable and its operations may stop at any time.

Dimitry Tatyanin, Legal Affairs Director, URALCHEM, JSC, “The owners of LLC Tomet seem to have deliberately prepared an obviously unacceptable proposal in order to accuse URALCHEM of a contentious position on the issue of bankruptcy of their company. Let me remind you that it was PJSC Togliattiazot that initiated the LLC Tomet bankruptcy procedure. Now, when the bankruptcy commissioner has analyzed the debtor's financial condition and confirmed the impossibility of fulfilling its obligations, it is clear that the only way to fulfill obligations to creditors and continue LLC Tomet's operations is the arrival of a serious investor who will put things in order at the company."