Dneprovsky Iron and Steel Works enters preventive restructuring: unable to repay debts

On October 1, the Economic Court of Dnipropetrovs'k Region opened the procedure of preventive restructuring of the private joint-stock company "Dnipro Metallurgical Plant" (DMZ) Alexander Yaroslavsky , reported in the court register.

The company requested to open the procedure due to financial difficulties. DMZ has significant accounts payable that it cannot repay, which indicates an unstable financial condition.

According to the company's report for 2024, the total amount of liabilities is UAH 6.07 billion, of which current liabilities are UAH 1.57 billion, and the short-term part of long-term debt is another UAH 0.32 billion.

Preventive restructuring is aimed at preventing insolvency of DMZ.

The plan provides for a three-year deferral of the obligations, a further one-year installment plan, and a partial debt write-off.

In July, Yaroslavsky's other plant, Kharkiv Tractor Plant , entered preventive restructuring. In both cases, an insolvency officer, Vitaliy Glevasky, was appointed administrator.

Dneprovsky Iron and Steel Works has a full metallurgical production cycle: blast furnace shop, oxygen converter shop, coke oven shop, rolling mill with two rolling mills.

However, due to the shutdown of the blast furnace in 2022, the company's production capacity was limited, and in 2024 it produced only blast furnace coke (289,100 tons worth UAH 4 billion). DMZ's share in total coke production in Ukraine was 12%. The plant also produced rolled metal products from tolling billets as part of a processing service – 44,600 tons.

The company's total revenue in 2024 amounted to UAH 5.4 billion, while the loss exceeded UAH 222 million.

Due to the war, traditional consumers of DMZ products either ceased operations or significantly reduced production volumes, which directly affected sales of the plant's products. At the same time, exports declined.

More than 1700 people work at DMZ.

• Preventive restructuring – is a new procedure for Ukraine, which appeared on January 1, 2025. The purpose of the procedure is to identify insolvency risks and prevent the debtor's bankruptcy. According to the Supreme Court, DMZ is the fifth company to go through it.