Court Temporarily Prohibits Yuzhny GOK's Capital Increase

The court’s decision is temporary until a constitutional court is able to determine whether the law on the privatization of Ukrrudprom enterprises conforms to the Ukrainian Constitution. Concorde Capital:In April 2005, Yuzhny’s (YGOK: Buy) AGM decided to increase its charter capital two fold by USD 317 mln. However, the State Security Commission did not register the share issue. In July, an EGM repeatedly increased capital by the same amount. The recent court ruling again postpones Privat Group’s (YGOK’s main shareholder) plans for a new share issue.