KDD close to losing Metro City project

KDD Group (KDDG LN) announced last Friday that Ukraine’s High Economic Court rejected its appeal related to a land plot for its Metro City project, implying a decision by the Kyiv Economic Court that invalidated KDD’s lease agreement to this land plot has taken effect. The company said it is still in the process of litigation with the Kyiv City Council over the land plot, but should the case eventually be decided against KDD, it would get back UAH 50.5 mln (USD 6.3 mln) it paid earlier under the investment agreement and will have to abandon the project. The court decision is one of the challenges the company is currently facing. Earlier this year, the company had to sell its Sky Towers and Zazimye projects to offload debt and improve its cash position. In other unfavorable court decision by the Kyiv Economic Court just this month, the company was obliged to pay USD 15.2 mln in fees and fines related to development of its World Trade Center project.