"Agreed to negotiate": Will ARMA manage to protect Oschadbank's interests in the competition for the management of the Gulliver shopping center?

Employees of the Asset Recovery and Management Agency met with a representative of "Oschadbank" a week before the end of the selection process for the management of the capital shopping mall "Gulliver" to discuss the interests of the state bank. However, it seems that no agreements were reached, reports UNN.

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On October 30, ARMA announced a competition to select a manager for the "Gulliver" shopping mall. The head of the agency, Elena Duma, proudly stated that she approached the selection of the manager for this high-profile asset with utmost rigor, even establishing the maximum of 4 criteria for candidates. Among the requirements that participants must meet are: a property portfolio with a total value of at least 100 million hryvnias, a professional team, confirmed experience in managing similar facilities, and proven financial stability.

The building of the "Gulliver" shopping mall serves as collateral for a mortgage loan from state banks, including "Oschadbank." However, among the criteria set by ARMA, there is no mention of the necessity to pay back the loan.

"Oschadbank" has repeatedly stated that the decision to transfer "Gulliver" to ARMA harms the interests of the state bank, as it deprives the bank of loan payments from the owning company of the capital complex. The bank's losses due to the cessation of loan payments could exceed 20 billion hryvnias.

After the announcement of the competition, the Deputy Chairman of the Management Board of "Oschadbank," responsible for working with NPLs, Arsen Milyutin, commented to UNN that the state bank plans to reclaim the "Gulliver" shopping mall building if ARMA hands it over for management. He expressed outrage that instead of loan payments to state banks, "Gulliver's" earnings would be given to an "unknown manager."

"We will seek to reclaim the asset. It's ridiculous; they (ARMA - ed.) understood the position of state banks from day one, yet they act as if the positions of state banks do not exist. Why should we have to turn to someone else? Why didn't they take this into account? In developing the documentation, they should have considered the position of state banks; why didn't they include it? Why should we chase ARMA and beg for something? We will seek to reclaim the asset, that's all," he stated.

After media coverage, ARMA effectively remembered the state bank and its interests midway through the selection competition and sent a letter to "Oschadbank."

One week before the end of the competition, agency employees "took the initiative" and held a working meeting with the Deputy Chairman of the Management Board of "Oschadbank," responsible for working with NPLs, Arsen Milyutin.

According to reports, during the meeting, the parties discussed issues concerning the management of the seized asset, which pertain to the interests of the state "Oschadbank" regarding debt repayment on loans.

"As a result of the meeting, a decision was made to continue the interaction between ARMA and "Oschadbank" to resolve all contentious issues and safeguard state interests," the agency reported following the meeting.

From such brief conclusions, it becomes clear that the parties "agreed to negotiate." It is evident that a single meeting is insufficient to resolve contentious issues. However, one might wonder why ARMA only begins to act under pressure from the media and public, "initiating" negotiations with the state bank, which could potentially lose billions due to ineffective decisions, just a week before the end of the competition?