Azot Cherkasy's Court Battles Continue

According to an announcement released by Azot Cherkasy’s (AZOT: Susp) legal advisor last Friday, the Kyiv Economic Court ruled the company’s three share issues made in 2004-2006 illegal. In August, the company’s majority shareholder, Ukrsib group, challenged the same ruling from the Higher Economic Court in Ukraine’s Supreme Court, which passed the issue to the Kyiv Economic Court. Vladimir Nesterenko: We did expect Ukrsib to appeal (see our report from Sep.12, 2006), and stick to our view that the legal risks associated with AZOT’s stock outweigh even the sizable return suggested by the stock’s current market price.