Ferrexpo Craters as $174 Million Held in Insolvent Bank

  • Shares plunge 35% to lowest since company listed in London
  • Bank F&C is controlled by major shareholder Kostyantin Zhevago
Lock
This article is for subscribers only.

Shares of Ferrexpo Plc slumped the most since the iron-ore miner and pellet producer listed in London in 2007 after revealing it has $174 million tied up in an insolvent Ukrainian bank that’s controlled by its biggest shareholder.

The company’s transactional lender, Bank Finance & Credit JSC, was declared insolvent by the National Bank of Ukraine in an announcement after the close of business on Thursday, Ferrexpo said in a statement. The bank is controlled by its largest shareholder, founder and chief executive officer Kostyantin Zhevago, it said.