Kharkiv Tractor Plant secures UAH 1 billion debt restructuring plan

The Commercial Court of the Kharkiv region approved a preventive restructuring plan for the private joint-stock company Kharkiv Tractor Plant, granting a three-year deferral on debt repayments totaling UAH 1.08 billion, according to the official court registry.

Once the deferral period ends, the company will have three months to fully repay the outstanding debt.

The plan was supported by creditors holding 55.3% of unsecured claims, including Indorbud LLC (UAH 520.7 million) and T&T Trade Ukraine LLC (UAH 50 million).

In his conclusion, Vitaliy Glevasky — the court-appointed preventive restructuring administrator — stated that projected cash flows and planned organizational measures indicate the company can restore solvency. Cost optimization, production consolidation, and expected growth in demand for agricultural machinery create prerequisites for successful implementation.

The court emphasized that preventive restructuring is a more efficient tool than bankruptcy, as it preserves the company’s economic value and avoids distressed asset sales at low prices. The approved plan is binding on all involved creditors, including those who voted against it or abstained.

Following the court’s approval, the powers of the restructuring administrator are terminated, and the company is now responsible for fulfilling the obligations independently.

• Preventive restructuring, introduced in Ukraine on January 1, 2025, is designed to identify insolvency risks early and prevent bankruptcy. According to the Supreme Court, Kharkiv Tractor Plant is among the first companies to undergo the new procedure.