SPIKE – Selepey, Volkovetsky & Partners

SPIKE

Business revitalization of SPIKE in a new business model

Our Client

Oleksandr Solovey, owner of Spike Trade AG, international commodities trading company.

Challenge

Spike Trade AG was founded in 2016 and its trading business had been growing successfully.

 

As a result after the first two working years they were able to conduct sales of about USD 300 million with a physical volume of more than 1 million tons of grain. The company was the first in the Ukrainian market to sign SWAP contracts. Spike Trade AG offered favorable prices and terms of purchase and cooperated with dozens of contractors.

 

However, due to the bad-faith actions of a number of the company’s counterparties in the SWAP market and the market of physical deliveries of agricultural products, in 2020 Spike Trade AG began bankruptcy proceedings.

 

Selepey, Volkovetsky & Partners began to cooperate with Spike Trade AG in April 2020 to restructure the company’s debt to 37 creditors and to assist with their bankruptcy proceedings. Moreover, SVP has become an advisor on Spike’s crisis management and business transformation.

Asset Stress

Payables for USD 8.2 million

As a result of the bad-faith actions of the counterparties, a debt arose to 37 creditors of Spike Trade AG

Receivables amounting to USD 12 million

A number of counterparties in the SWAP and physical supply markets did not settle their accounts with the company

Forced liquidation of the company

As a Swiss company Spike Trade AG was a subject to the Law on compulsory debt collection and bankruptcy

Client Outcomes

SVP team worked with Oleksandr Solovey to resolve the situation with a sudden critical situation in business. In particular, the firm provided assistance with negotiations and restructuring their relations with contractors. The audits held by PricewaterhouseCoopers confirmed that the distressed situation, Spike Trade AG faced, was caused by non-performance of the third party’s obligations.

 

While advising the client on their anti-crisis management and business transformation, we saw a significant prospects in the application of SPIKE’s professional competencies in a new for the Ukrainian market business model, namely in the format of providing the Ukrainian market with brokerage services for grain and oilseeds trading. In June 2020, in partnership with SVP, Oleksandr Solovey and his team returned to the market as SPIKE BROKERS. In this project Selepey, Volkovetsky and Partners is a strategic expert in the revitalization of distressed businesses, as well as a financial partner.

Review

“I was lucky to involve Selepey, Volkovetsky and Partners in resolving the situation around SPIKE. This firm has extensive experience of working with distressed assets and businesses. As a result of our cooperation, our work with creditors took a constructive turn, and the SPIKE team began to work successfully in a new format.”

Oleksandr Solovey, co-owner, CEO of SPIKE BROKERS

The Next Project

Corporate business structuring in an innovative sphere for the Ukrainian market

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