Ukrainian iron ore miner Ferrexpo (LON:FXPO) is facing the insolvency of a bank that holds more than half its cash.
Ferrexpo, which is headquartered in Switzerland, said the National Bank of Ukraine had adopted a decision to declare Bank F&C insolvent.
Bank F&C, a related party ultimately controlled by Ferrexpo's largest shareholder Kostyantin Zhevago, held about US$174mln of Ferrexpo's total cash balance of about US$280mln after payment of the interim dividend. The rest of the money was held offshore.
Ferrexpo said in a statement: "The group's operations are not currently affected. The board of Ferrexpo is assessing the situation and will update the market as necessary."