Cherkasyoblenergo forbidden from paying dividends by court

Yesterday Interfax reported that on May 13 the Cherkasy Regional Economic Court forbade Cherkasyoblenergo (CHON: SELL) from paying dividends in 2008, as the company is undergoing bankruptcy procedures. At their AGM on May 11, Cherkasyoblenergo shareholders voted to direct UAH 4.5 mln (USD 0.9 mln) into dividends. Alexander Paraschiy: According to legislation, bankruptcy procedures cannot be brought against electricity companies until 2009, and any open procedures should be stopped (see our flash note of June 05). Cherkasyoblenergo has been in the bankruptcy process since 2004; its overdue payables are about USD 20 mln and can be restructured and repaid over 2-3 years.