# Petropavlovsk PLC (04343841)

> Why UK company 04343841 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/04343841

- **Status:** Administration ended
- **Administration began:** 2022-07-18
- **Administrators' firm:** Opus Restructuring
- **Formerly:** Peter Hambro Mining PLC; Excelsior Corporation PLC
- **Incorporated:** 2001-12-20
- **Location:** Milton Keynes
- **Industry:** 08990 Other mining and quarrying n.e.c.

## Why it went into administration

- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Rising costs / inflation
- Creditor pressure / legal action

## From the administrators' statement

3.1 As mentioned above, the Company is the parent company of a group of gold mining and exploration companies operating in the far east of Russia. As a result of international sanctions and other restrictions as a result of Russia’s invasion of Ukraine in 2022, the Group’s ability to operate its business was seriously impaired due (primarily) to the introduction of legal and practical restrictions on its ability to receive funds (whether by way of dividends, loans or otherwise) from its trading subsidiaries. As a result of these difficulties, the Company became unable to pay its debts as they fell due. This is explained in greater detail below.

3.2. Until April-May 2022, the Company’s main lender was GPB, one of Russia’s largest commercial banks. GPB provided a USS 200 million term loan to the Company (the Term Loan) and credit facilities of c.USS 86.7 million to certain of its subsidiaries in Russia (the Facilities). The Company also had a significant commercial relationship with GPB and its subsidiaries, who were major buyers of the Group’s gold with contractual rights of exclusivity.

3.3 On 24 March 2022, the UK government announced the imposition of 65 new sanctions targeting strategic industries, banks and business elites. GPB was one of six Russian banks which became subject to asset-freezing measures under sanctions regulations. As a result of these sanctions as well as the legal and practical impediments to transferring funds from the Russian subsidiaries to the Company, the Company and its subsidiaries were unable to make payments to GPB and so defaulted on the Term Loan and the Facilities, which were in turn accelerated by 3.4

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/04343841/filing-history/MzM1MTM3NjQzMmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/04343841

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.