Group "Coke" will test the second generation of businessmen Zubitskih

Experts doubt whether Boris Zubitsky's sons will be able to retain the Industrial-Metallurgical Holding.
Origin source
President of the Criminal Code "Industrial Metallurgical Holding" (Cox Group) Evgeny Zubitsky, senior vice president of his brother Andrei Zubitsky, their mother Galina Zubitskaya (co-owner) were included in the rating of the richest families in Russia. Their condition is estimated at 950 million dollars. The controlling share of the company was collected by the head of the family Boris Zubitsky, who died in February 2017. Given that the coke production figures of the holding are declining, the main question is probably whether the heirs will be able to ensure the prosperity of the empire?

How it all began

The control package of "Coke" Boris Zubitsky began to collect in the 1990's. For about five years, he needed to buy shares from employees. The times were not easy, the enterprise was on the verge of bankruptcy, and people regretted parting with the shares. Boris Zubitsky acquired them on his own money, taking loans. When he managed to raise about 10%, at an extraordinary meeting of shareholders in 1995 he was elected CEO of Cox. In 2000, the Zubitskie acquired about 60% of one of the key ironmaking enterprises in the country - Tulachermet. This was the main part of coke from the plant.

Goals and means

Without scandals the activity of Boris Zubitsky was not spared. Its structures often pursued aggressive policies, and Zubitsky himself, according to media publications, supposedly owns such words: "In our economy, the main thing now is the ability to get out and do nothing from nothing."

This is similar to the truth, it is enough to recall the protracted conflict in the early 2000s at the two largest enterprises in the Tula region. So, representatives of OJSC "Tulachermet" Zubitsky blocked access roads to OAO "Vanadium", 67% of shares belonged to the financial and industrial group "Alef". Apparently, based on the belief that the end justifies the means, the representatives of "Tulachermet" did not let twenty-two wagons with raw materials to "Vanadium", thus effectively stopping the work of the enterprise. And on top of everything, the supply of steam, which is necessary in the production of ferroalloys, was discontinued. Only interference of local authorities could stop this conflict. All ended with the fact that in 2003 Aleph sold Zubitsky controversial assets. Although it seemed to some that it resembled a normal raider capture.

There were rumors that Boris Zubitsky is the owner of offshore companies Eurotrading Financ. Ltd, Larton Investment Inc and Wilter Finance Ltd, which own large stakes in Cox and Tulachermet. However, the billionaire denied such accusations and threatened to apply for protection to the prosecutor and the FSB. But this story did not have any continuation.

Family affairs

In 1999, Boris Zubitsky became a member of the State Duma, passing the business to his eldest son Eugene. For a long time Boris Zubitsky was considered one of the richest deputies. For example, in 2009, his income amounted to 423.8 million rubles. According to the magazine "Finance", in the rating of Russian billionaires in 2010 Zubitsky occupied 168th place. His fortune was $ 490 million dollars. Just over a year ago, Boris Zubitsky withdrew from the company's capital. The shares were distributed between the son Yevgeniy (13.39%, his share increased to 45.4%) and his wife Galina (13.39%).

The share of the second son, Andrey, remained unchanged at the enterprise - he owns 27.11% of PJSC "Koks". True, this section was preceded by a family scandal. The former wife of Boris Zubitsky Galina sued the division of the company's assets. The claim for the division of property Zamoskvoretsky court of Moscow registered May 24 last year, the property was seized. But later disagreements between the couple were settled, and the case of the section was terminated. However, just a week before the termination of the case Zubitsky wrote a letter to the Supreme Court and asked to protect his shareholder rights.

Zubitsky said that prior to the imposition of the arrest, he intended to transfer 26.77% of Cox to the charitable foundation on the grounds that his son Eugene, who votes by his shares by proxy, ran the company "shortsightedly and unprofessionally", and the decisions "were taken at the expense of the general policy of management ". Details were not disclosed. For what reason Zubitsky the elder changed his initial plans, remains unknown. And in February 2017, Boris Zubitsky died.

Lowering ratings

In 2015, RAEX rating agency (Expert RA) downgraded the credit rating of Coke from "A +" to "A". "The downgrade is due to the deterioration of the liquidity position of the company - in June 2016 the company will have to pay off Eurobonds for $ 134 million, the company's total short-term debt as of April 25, 2013 is 32.8 billion rubles, while the ratio of short-term debt payments to EBITDA for 2015 was 2.96 ", Said Pavel Mitrofanov, Managing Director for RAEX corporate ratings (Expert RA).

The rating was influenced by the low level of liquidity indicators (as of December 31, 2015, the absolute liquidity ratio was 0.08, the liquidity ratio was 0.19, the current liquidity was 0.28), the moderately high level of debt burden (debt ratio as of December 31, 2015 to EBITDA for 2015 = 5.06 , CFO / debt = 31.3%, short-term debt 65%), narrow opportunities for attracting collateral financing. Experts also noted a rather high level of currency risks (as of December 31, 2015, the share of foreign currency debt was 68%, the share of foreign currency earnings was 60%), and a low level of insurance coverage.

In the first half of 2017, the holding produced 1.338 million tons of coke (6% moisture), which is 3% lower than the same period in 2016. The main question now is how the sons of the former Duma deputy will behave in this situation. True, in July it became known that two new mines had been opened in the Kemerovo region. "They cost the industrial and metallurgical holding almost 20 billion rubles. But as far as these expenses were justified, now only time can show.