News (#03 March 2019)


Mariupol Heavy Engineering Machine Building Plant declared bankrupt

The Economic Court of Kyiv has declared the Mariupol Heavy Engineering Machine Building Plant PJSC to be bankrupt.

The case materials provide that it has been established that the sum of the enterprises liabilities exceed its assets, following which the administrative receiver has admitted it will be impossible to pay off the creditors monetary claims other than through the liquidation procedure.

It is also noted that in October 2018 the same court acknowledged Delta Banks credit claims to UAH 1.54 billion and Ukreximbanks claims to UAH 3.78 billion against Mariupol Heavy Engineering Machine Building Plant PJSC as secured by the debtors pledge of property.

In December 2017 the register of creditors claims was approved, which included claims (fourth-priority basis) by Alfa-Bank, Ukrsotsbank (UAH 1.29 billion), Raiffeisen Bank Aval (UAH 1.1 billion), OTP Bank (UAH 593.6 million), and Azovobschemash PJSC UAH 189.3 million.

The court also acknowledged the following creditors claims secured by the debtors property pledge: Sberbank (UAH 246.3 million), Raiffeisen Bank Aval (UAH 121 million), Ukrsotsbank (UAH 115.4 million).

And on 23 January 2019 the Supreme Court rejected the cassation appeal filed by the liquidator of Delta Bank in case No. 910/12136/16 and upheld the ruling of lower courts, under which Trading HouseAzovobschemash PJSC was declared bankrupt and the liquidation procedure was commenced.

Naftogaz wins UAH 5.2 billion from Ukrtransgaz in court case

NJSC Company Naftogaz of Ukraine won a lawsuit filed against one of its subsidiaries, Ukrtransgaz JSC, worth over UAH 5.2 billion, for improper compliance with the terms and conditions of an agreement in relation to payments for gas received. More than half of this figure is made up of penalties and cost of inflation.

According to a ruling by the Economic Court of Kyiv, the court ordered to enforce Ukrtransgaz JSC to pay the following in favor of NJSC Naftogaz of Ukraine: UAH 2.048 billion, which is the principal amount of debt, penalty in the amount of UAH 1.687 billion, 3% annual interest in the amount of UAH 0.332 billion, inflation loss of UAH 1.314 billion, and court fees in the sum of UAH 611,000. The case files state that in the period from January to April 2017 Naftogaz of Ukraine transferred natural gas worth more than UAH 13.397 billion to the ownership of Ukrtransgas. At the same time, the defendant only made partial payment, which resulted in creation of debt to the tune of UAH 2.048 billion.

Privatbank won Hague court case related to assets in Crimea against Russia

On 15 February the Permanent Court of Arbitration at the Hague officially made public a partial arbitration award in the case against the Russian Federation adopted in favor of Privatbank.

The Court of Arbitration has acknowledged its jurisdiction over all the claims filed by Privatbank against the Russian Federation related to violation by the latter of its obligations under the bilateral agreement on the promotion and mutual protection of investments through illegal expropriation of assets owned by Privatbank in Crimea.

According to the court decision, Privatbank has the right to receive indemnification for such expropriation in full.

The Court of Arbitration has left the issue on the indemnification amount payable to Privatbank for illegal actions by the Russian Federation to be considered at the next stage of arbitration proceedings.

Privatbank wishes to receive reimbursement to the tune of over USD 1 billion.

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