Financial recovery of Electrovazhmash is accelerating: salary arrears are repaid
On November 25, 2020, SOE Electrovazhmash has paid off most of the salary arrears, namely in August, September and 25% in October. The rest of the salary will be paid by 30th November 2020.
It is first stage of complex financial recovery program implementation. The Program was developed by SOE Electrovazhmash and the State Property Fund of Ukraine under supporting of the MPs and Government.
In additional to the stabilization of salary payment, the factory has completed the attraction of working capital in the amount of UAH 200 million. The lack of these funds was the main reason for the crisis state of the enterprise in recent months.
The factory management also confirmed the plan for shipments of products for November-December 2020 for major buyers, as well as reached an agreement on loading the SOE Electrovazhmash with orders for 2021, which will allow the enterprise to operate normally.
Moreover, management restructured Ukreximbank's problem loan and attracted new financing instruments. In the future, it will improve factory’s credit history and allows it to use bank financial instruments.