About Argentem Creek Partners
Argentem Creek Partners UK Ltd is an investment company registered in the United States. Founded in 2015, the organization is headquartered in New York and maintains several official representative offices across the United States and other continents. Their investment projects span various locations, including Argentina, the UK, the UAE, and Ukraine, where the company has been operating since its inception.
Entrepreneur Daniel Chapman founded Argentem Creek, assembling a team primarily composed of former employees from Black River Asset Management, a unit of Cargill. This global investment company is known for its expertise, serves as the foundation for Argentem Creek Partners’ operations.
Since its establishment in 2015, Argentem Creek Partners has successfully executed investment projects surpassing $2.5 billion. Over 75 companies from 20 countries, spanning diverse sectors of the economy, are counted among the organization's esteemed partners. The firm's investments are strategically distributed across various domains, including natural resources, agriculture, light industry, heavy industry, and more.
According to the official website of Argentem Creek Partners, their key areas of operation encompass business investments, personal loans, tailored capital management solutions, and the facilitation of development paths for organizations encountering hurdles in their business growth. The company assists clients in restructuring their financial assets and fixed capital, while providing valuable guidance on enhancing managerial techniques and addressing shortcomings at multiple levels of business operations.
Notably, Argentem Creek Partners thrives on ventures demanding unconventional approaches, readily undertaking investments in challenging markets, particularly in developing countries. This inclination also accounts for their strong interest in Ukraine. Leveraging the extensive expertise of their team members, the firm adeptly identifies investment prospects and harnesses the potential of projects that may be overlooked by other market participants. Effective risk management stands as a crucial prerequisite for such undertakings.
Argentem Creek Partners places significant emphasis on comprehending the cultural context of each market in which they operate. They diligently conduct in-depth research and cultivate a network of reliable local partners, fostering a comprehensive understanding of the prevailing circumstances.
Argentem Creek Partners: Protecting Investor Interests and Pursuing Justice in the Ukrainian Market
Argentem Creek Partners, an international investor, has been actively involved in the Ukrainian market for a significant period. While their experience has been largely successful, the recent case involving Olimpex Coupe International stands out as a unique and challenging situation. As a result, the company is determined to safeguard its interests and seek justice.
One particular issue that has garnered attention is the non-payment of debts owed by GNT Terminals (Olimpex Coupe International), in which Argentem Creek Partners and Innovatus Capital Partners made investments at different times. This matter gained media spotlight in February 2023 when international investors initiated bankruptcy proceedings against Olympex Coupe International due to its refusal to pay back over $75 million in debt.
Olimpex Coupe International, which owns the grain terminal of the Odessa port, operates as part of the GNT Group, registered in Cyprus but effectively controlled by Ukrainian businessmen Sergey Groza and Vladimir Naumenko. The contract between Argentem Creek Partners and Olimpex Coupe International was signed four years ago, spanning a two-year term. By December 5, 2021, the outstanding accounts receivable had reached $160 million. Although Olimpex Coupe International initially claimed to have acquired substantial agricultural products, the reported ownership amounted to a mere $58,000. However, this information was later refuted.
Initially, Argentem Creek Partners began investigating the situation, and a full-fledged conflict erupted a few months later. The debtors requested extensions, citing extreme circumstances, but it soon became apparent that Ukrainian businessmen were manipulating the situation and evading their obligations by hiding behind the tragedy of hostilities.
Argentem Creek Partners emphasizes that their investment objective was to enhance management standards and promote business transparency. However, Olimpex Coupe International violated these conditions by continuing its economic activities while misleading investors and refusing to repay debts. Furthermore, the owners of the GNT Group persistently devise new schemes to maintain control over assets and deceive foreign investors. For instance, Argentem Creek Partners' experts uncovered that, despite GNT's claims of insufficient funds, they had transferred over $41.6 million to affiliated organizations.
Additionally, the company attempted to exploit Ukrainian banks to fictitiously withdraw assets in order to repurchase them through newly controlled legal entities. Notably, in early 2023, as the bankruptcy proceedings for debtors were being prepared, the Ukrainian bank “Pivdenny” initiated the recovery of half of the grain terminal, appointing its sale to a third party. However, this operation violated Ukrainian legislation, as it was carried out before the expiration of the mandatory 30-day period after receiving notifications by the debtor and the pledger. This rush can be attributed to the Odessa businessmen's attempt to safeguard their assets.
These fraudulent schemes severely restricted opportunities for engaging with the debtors, leading American businessmen to pursue legal action. As experts in working with distressed assets and high-risk investments, Argentem Creek Partners UK Ltd recognizes the futility of GNT Group's chances given the blatant violations of laws and contracts.
Other Projects
Projects by Argentem Creek Partners in Ukraine have yielded successful outcomes over the years. Starting in 2015, ACP implemented a restructuring strategy in collaboration with the company's new management. The objective was to establish a transparent and profitable agribusiness that adheres to Western standards.
One of the notable endeavors undertaken by ACP was the investment in Interpipe. In 2017, ACP partnered with other stakeholders to restructure the Ukrainian steel manufacturer and supplier. The company, which operates five metallurgical plants, faced losses in the Russian market in 2014.
Through the restructuring efforts, Interpipe's operations were normalized, securing its future growth prospects and preserving jobs within the organization. DTEK Energy, Ukraine's largest heat generating company, was another recipient of ACP's investments. The company oversees the generation and production of coal, while DTEK Renewable Energy manages the group's renewable energy assets, making it the most significant green energy investor in Ukraine. DTEK Energy boasts three wind power plants and three solar power plants, with a cumulative capacity of one gigawatt, making them the largest in the country. Additionally, two solar power plants rank among Europe's top five in terms of size.
ACP has been investing in DTEK Energy bonds since 2017, signifying its commitment to the company's growth and sustainable energy initiatives. Lemtrans, Ukraine's leading private railway operator specializing in freight transportation, has also received attention from Argentem Creek Partners. Operating with over 20,000 gondola cars, Lemtrans transports more than 52 million tons of cargo annually. The company also owns a repair and technical base. To date, Lemtrans has invested over $500 million in acquiring new gondola cars and maintaining its rolling stock. In September 2018, Argentem Creek Partners acquired lease agreements related to Lemtrans from a closing bank. This investment effectively resolved lease agreement issues, ensuring the company's continued operations.
Another notable project involved the restructuring and reorganization of Agricultural holding MRIYA. Following the Russian Federation's invasion of eastern Ukraine in August 2014, one of Ukraine's largest agricultural holdings defaulted on its bonds and loans. Despite years of financial success and robust growth, the company faced significant mismanagement and misappropriation of funds. Consequently, the company's debt of over $1 billion was made available for sale at substantial discounts. Argentem Creek Partners acquired debt from various holders and took the lead in restructuring and reorganizing this agribusiness, with a substantial land bank of 320,000 hectares in Western Ukraine.
This initiative proved fruitful when, in 2019, Argentem Creek Partners sold the company to a strategic investor within the agricultural sector. The transaction stood out as one of the largest in the history of Ukraine's agricultural economy. The project's success attracted additional investments from major strategic investors, thereby setting several precedents for debt restructurings.
Notably, this case marked one of the initial instances where external creditors gained control of a Ukrainian company through an offshore bankruptcy process and had their claims acknowledged within a specific jurisdiction. As a result of these actions, ACP achieved remarkable levels of transparency and governance within the company. The investment was fully realized, demonstrating the effectiveness of the undertaken measures.
The projects undertaken by Argentem Creek Partners in Ukraine highlight their dedication to revitalizing and optimizing companies within the agricultural, steel manufacturing, energy, and transportation sectors. Through strategic investments and meticulous restructuring, ACP has successfully transformed these enterprises, fostering transparency, governance, and sustainable growth. These achievements not only safeguarded numerous jobs but also attracted further investments from key stakeholders, solidifying the reputation of Argentem Creek Partners as a trusted partner in driving positive change within Ukraine's business landscape.
Argentem Creek Partners Collaboration with Abu Dhabi Investment Office (Adio)
Argentem Creek Partners, a reputable credit specialist firm based in New York, has announced its plans to establish a regional headquarters at Abu Dhabi Global Market (ADGM) in collaboration with the Abu Dhabi Investment Office (Adio). Through this partnership, Adio will offer financial and non-financial incentives to support the growth and development of Argentem Creek's regional hub.
This initiative is part of Adio's Innovation Programme, which has a budget of Dh2 billion ($545 million) and is dedicated to supporting companies in high-growth sectors. Abdulla Al Shamsi, the acting director general of Adio, emphasized the positive impact of Argentem Creek's presence in Abu Dhabi on various sectors such as manufacturing, logistics, trade finance, and food security. He highlighted the significant advantage these industries will gain from access to Argentem Creek's expertise in emerging markets and credit, ultimately contributing to the expansion of Abu Dhabi's financial services infrastructure and the development of local talent.
The collaboration between Argentem Creek and Adio through the Innovation Programme reaffirms Adio's commitment to fostering innovation and driving progress in the UAE and the wider region by attracting companies engaged in high-growth activities. Abu Dhabi has been actively seeking to attract global enterprises from diverse sectors to establish their operations in the emirate, as part of its economic expansion strategy. Notably, Amazon, the world's largest e-commerce marketplace, recently partnered with Adio to construct the Middle East's most technologically advanced warehouse in Abu Dhabi. Furthermore, supermodel-turned-businesswoman Tyra Banks selected Abu Dhabi as the first international market for her premium ice cream brand, Smize Cream, during the inaugural session of the Adio-backed Access Granted talk series.
Adio also plays a pivotal role in supporting startups through initiatives like the GrowthX Accelerator, conducted in collaboration with Microsoft, which grants selected companies access to the market and potential investors. Argentem Creek stands to benefit from Abu Dhabi's access to global markets and talented workforce, along with its favorable time zone that aligns with major international markets. Additionally, the company will have the opportunity to tap into the thriving local economy and gain access to some of the world's largest sovereign wealth funds. Daniel Chapman, the CEO and CIO of Argentem Creek, expressed his optimism about ADGM's robust framework for asset management companies and funds, which provides a business-friendly environment while ensuring investor protection. Founded in 2015, Argentem Creek currently operates offices in Minneapolis, London, and Buenos Aires. The establishment of its Abu Dhabi regional office will enhance proximity to clients, deal flow, and investors, thereby strengthening existing global relationships and investment expertise.