Azot Severodonetsk's Bankruptcy Case Closed.

The company’s financial recovery process was closed by the Lugansk Oblast Economic Court. Concorde Capital: We believe this move will bring Azot Severodonetsk closer to a re-privatization scenario, which, in our opinion, would not be optimal for the company. A case questioning the legality of the formation of a Closed JSC, based on state-owned Azot Severodonetsk, is in the courts now; nevertheless, the government already announced the company will be sold in 2005. Worldwide Chemical LLC, the owner of the majority stake in the company wants to reach a comprise with the authorities, and has agreed to switch its 60% stake in CJSC for the 40%, owned by the State Property Fund. The main problem with re-privatization is that the company would lose its source of cheap Russian gas, which Worldwide Chemical managed to negotiate for 20-30% cheaper than for the majority of industrial users in Ukraine in 2003-04.