The plots of land that Kharkiv provided free of charge to the «Aviles» housing and construction co-operative for the construction of social housing were used as mortgage collateral for loans taken out by meat-processing companies, all oflinked to the co-founder of the co-operative, Denys Paramonov. The liabilities amounted to $3 million, 31.5 million and 37.7 million hryvnias, according to the mortgage documents.
Briefly about the main points
- The «Aviles» Housing Construction Co-operative has been allocated 1.62 hectares by Kharkiv for social housing.
- Denis Paramonov was a co-founder of the co-operative.
- The plots were secured by three guarantees worth millions of dollars and hryvnias.
- The mortgages on the land on Batumska Street were confirmed by a court order in 2019.
- A residential block has been built and brought into use on one of the sites.
The city transferred the land to the co-operative in 2008
By a resolution dated 24 December 2008, the Kharkiv City Council allocated 1.62 hectares to the «Aviles» Housing Construction Co-operative for the construction of social housing. Denis Paramonov He was a co-founder of the co-operative.
A residential block was built on the plot at 6 Batumskaya Street and was commissioned on 2 July 2014. The commercial dispute concerning the initial allocation of the land ended with the claim being dismissed on the grounds that the limitation period had expired; therefore, the housing cooperative’s rights to the plots were not definitively revoked.
Three mortgage agreements secured the obligations of the meat companies
The ruling of the Osnovyanskyi District Court of Kharkiv dated 26 December 2019 describes three mortgage agreements relating to plots of land on Batumska Street. Kredobank accepted the land as security for a loan of $3 million to Saltivskyi Meat Processing Plant Ltd and for a debt of 31.5 million hryvnias owed by Berdiansk Sausages Ltd.
Another agreement with Bank Vostok provided for a principal obligation of 37.7 million UAH, guaranteed by the «Saltivsky Meat Processing Plant». The subject of this mortgage was four plots of land with a combined area of 0.8072 hectares. At the time of the court proceedings, they were registered in the name of the «Aviles» Housing and Building Cooperative and were subject to a mortgage.
