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Case
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Reference no. 119-0101-1B
Authors: Adomas Audickas (Ukrainian Corporate Governance Academy); Polina Boichuk (Ukrainian Corporate Governance Academy); Taras Ivanyshyn (Ukrainian Corporate Governance Academy)
Originally published in: 2019
Revision date: 06-Dec-2019

Abstract

The case series describes the story of Mriya Agro Holding, one of the most successful agriculture companies and the largest listed crop producer in Ukraine, from its establishment in 1992 to its default in 2014, with a special focus on the years of 2009-2012 when it was experiencing its best times, accompanied by boosting sales, expanding landbank, increasing EBITDA margin and involving large investments from international and local creditors (eg IFC and EBRD). Though the company and its owners - the Guta family - had excellent reputation, Mriya's accomplishments and activities were doubted by some observers and market players who concluded that the financials were too suspicious, did not add up or were 'too good to be true' - they were outnumbered, yet right. When the company surprisingly defaulted in 2014, it was revealed that the Gutas were engaged in large-scale fraud and money-laundering, thus managing to deceive the independent directors sitting on the board, external auditors and the most reputable investors in the world.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 1992-2012.

Geographical setting

Region:
Europe
Country:
Ukraine
Locations:
Kyiv region; Ternopil region

Featured company

Mriya Agro Holding

Featured protagonist

  • Mykola Guta (male), CEO

About

Abstract

The case series describes the story of Mriya Agro Holding, one of the most successful agriculture companies and the largest listed crop producer in Ukraine, from its establishment in 1992 to its default in 2014, with a special focus on the years of 2009-2012 when it was experiencing its best times, accompanied by boosting sales, expanding landbank, increasing EBITDA margin and involving large investments from international and local creditors (eg IFC and EBRD). Though the company and its owners - the Guta family - had excellent reputation, Mriya's accomplishments and activities were doubted by some observers and market players who concluded that the financials were too suspicious, did not add up or were 'too good to be true' - they were outnumbered, yet right. When the company surprisingly defaulted in 2014, it was revealed that the Gutas were engaged in large-scale fraud and money-laundering, thus managing to deceive the independent directors sitting on the board, external auditors and the most reputable investors in the world.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 1992-2012.

Geographical setting

Region:
Europe
Country:
Ukraine
Locations:
Kyiv region; Ternopil region

Featured company

Mriya Agro Holding

Featured protagonist

  • Mykola Guta (male), CEO

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