The Poltava District Prosecutor’s Office has filed a lawsuit to recover UAH 7.4 million in alleged rent debt from Generation-7 LLC for a plot on Kyivske Highway. The land’s valuation surged by 12.84 times in February 2023 following an updated extract by the State GeoCadastre, raising the total assessment to UAH 61.2 million.
As part of the proceedings, a judge from the Commercial Court of Poltava Region issued a unilateral ruling on July 27 freezing all accounts and real estate of the company without notifying the involved parties. Meanwhile, the enterprise’s CEO has been serving in the Armed Forces of Ukraine since 2022 and has been deployed directly to the combat zone since April 2025.
Generation-7 LLC has leased the 4-hectare land plot for the construction of a shopping and entertainment center since 2007, maintaining regular lease payments based on a assessment of over UAH 4 million. However, during the recent recalculation, authorities adjusted the land-use coefficient from 0.5 to 2.5—a rate applied to fully operational commercial centers—despite the site remaining undeveloped.
Company representatives point to several major violations in the new valuation:
Duplicate Land Registry Entries: Three distinct plot numbers exist for the same address in the state cadastre.
Lack of GeoCadastre Documentation: The State GeoCadastre officially confirmed that it holds no records of any approved changes to the land-use designation.
Violation of Local Directives: The local coefficient was applied contrary to an active prohibition enacted by the Poltava City Council in 2009.
Missing Valuation Extracts: Valuation extracts were never generated for part of the period covering the claimed debt.
Lower courts previously dismissed a lawsuit by Generation-7 LLC to annul the GeoCadastre extract, citing missed procedural deadlines, despite the director’s active military deployment. The Supreme Court initiated cassation proceedings in May, but the case materials have yet to be delivered to the court.
On August 27, the Eastern Appellate Commercial Court will review the appeal against the asset freeze. The upcoming ruling will determine whether the company can unfreeze its operations and continue business activity.