A weak ago, the High Economic Court of Ukraine obligated Kharkivoblenergo (HAON: HOLD) to give back to State Committee of Reserves 12 ths mt of mazut (market value is USD 12.0 mln without VAT) and pay a fine amounting USD 8.8 mln. According to the committee, it deposited this mazut in 1992-1997 at the company, and Kharkivoblenergo utilized it without the committee’s permission. The company’s management claims they have documents confirming that they did not utilize the mazut and they plan to appeal to the Supreme Court. Alexander Paraschiy: If the company loses the court battle (we estimate this probability is 50%), its debt will increase by about USD 20.8 mln, which is close to its annual EBITDA. Still, it is much lower than the company’s payables (USD 85.8 mln), and thus will not affect Kharkioblenergo’s debt situation much.