Privatbank sues its former shareholders in London

The nationalized financial institution Privatbank (PRBANK) has initiated a lawsuit in London against its former shareholders, the dt.ua news site reported on Dec. 20, citing anonymous sources. The bank is demanding that its shareholders return funds allegedly taken away from the bank and repay refinancing loans provided by the central bank. Privatbank is also asking the court to adopt an interim award to arrest the assets of the former shareholders at a USD 3 bln total value. The bank’s legal advisor in the hearing is Hogan Lovells, according to dt.ua.



In other news, the finbalance.com.ua news site reported on Dec. 20 that a local court in Kyiv ruled on Dec. 15 to prohibit Privatbank, state bodies and their legal and financial advisers to take any action that affect or may affect the rights and interests of Igor Kolomoisky, a former shareholder of Privatbank. Also the court ruled to prohibit the government from paying for the services of law firms Hogan Lovells and Asters, as well as pay for the services of AlixPartners and Kroll, which are preparing a forensic audit report on Privatbank.



Recall, Privtabank was declared insolvent on Dec. 18, 2016 and was nationalized three days afterwards. The government has already contributed UAH 139.2 bln into the bank’s equity since then, and the bank's bailed-in creditors contributed another UAH 29.4 bln.



Alexander Paraschiy: This is merely the beginning of a long legal battle between the Ukrainian government and former shareholders of Privatbank. Most likely, we will see more aggressive legal actions from the former owners of the bank, which will complicate the process of recovery of any of the bank’s assets.



In its battles on different fronts, the Ukrainian government looks not ready to reach an amicable resolution with anybody anytime soon, including the bailed-in holders of Privatbank’s Eurobonds. For the bondholders, the multiple legal actions involving the bank may imply more delays on hearing their claims to recover the value of their Eurobonds.

Источник: Конкорд Капитал