Russian Agricultural Bank (RusAg) assigned its claims under Donstar loans to a specialist investor - ‘New duck farms’ Limited liability company (part of Damate Group).
‘Donstar’ Limited liability company (Donstar, the company) is the owner of the largest Russian duck meat production facility with capacity of 16.5 thousand tonnes per year based in the Rostov region. In late 2018, the company halted its operations due to a deterioration in financial condition caused by the owner’s mistakes and adverse sanitary and epizootic situation.
On 22 May 2020, RusAg and Damate Group (‘New duck farms’ Limited liability company) signed an agreement on assignment of claims under Donstar loans.
The new lender plans to take Donstar’s assets on lease, carry out a technical audit, take measures to eliminate technological risks and re-launch production in Q3 2020.
“Given the unique nature of Donstar’s production facilities and its social and economic value for the country and the Rostov region, in particular, RusAg as the core industry bank has thoroughly for a year looked for an effective investor with best expertise in production and poultry sales, who is willing to take responsibility for reviving the project. Our choice was not random: Damate Group has a reputation for being a dynamic and efficient agribusiness. The re-launch of a hi tech duck meat production in the Millerovo district of the Rostov region with higher quality standards under control of Damate Group and with RusAg’s financial support will have a favourable effect in terms of reducing social tensions and increasing local fiscal revenues,” Irina Zhachkina, First Deputy Chairman of the Board at RusAg, said.