PJSC Ukrnafta Board Chairman Mark Rollins will ask the supervisory council of the company to start pre-trial reorganization for debt repayment.

"I feel strongly in the interest of the government and the people of Ukraine to keep Ukrnafta operating in a profitable way. Hence, I am recommending this course of action. So I am recommending to my supervisory board that the financial restructuring be initiated under the guidance of the existing executive board. I am looking for support for developing and implementing this reorganization plan from the shareholders, the government and the State Fiscal Service," he said at a press conference at Interfax-Ukraine in Kyiv.

According to Rollins, the company currently works with a positive cash flow but it cannot repay its tax liabilities in the short term.

"I've met with all the parties already and they have indicated support for this course of action. So I anticipate a meeting of the supervisory board next week already at which I expect them to approve the initiation of this process. And I also call for a general meeting of the shareholders in order to move the process forward," the official said.

After the parties' positions are agreed, the reorganization plan must be approved by the creditors, including the largest lender in the face of the State Fiscal Service, and by the court according to the statement submitted by Ukrnafta. In general, about three months are required from the beginning of the reorganization process to its approval.

As reported earlier, Ukrnafta's debt to the national budget in tax and fees payment exceeds UAH 10.2 billion.