Kernel under legal proceedings due to long-lasting unresolved conflict
22 December 2020
A court in Luxembourg has opened insolvency proceedings against Kernel Holding S.A., a subsidiary of Ukrainian agroholding Kernel. The reason for such measure was a new lawsuit from Mikhail and Inessa Stadnik, the former owners of Ukraine-based Stiomi Holding and Khmelnytskyi Bread Factory acquired by Kernel back in 2012. By the terms of the acquisition deal, the total worth of two enterprises was $60.9 million. However, Kernel paid only $24 million due to arising controversies between the parties. As reported by Kernel, the other party refused to honor some agreements.
The current legal proceedings might have financial and reputation risks for Kernel which claims the accusations of its opponent unjustified.