Privatbank sues its former shareholders in London
20 December 2017
The nationalized financial institution Privatbank (PRBANK)
has initiated a lawsuit in London against its former shareholders, the dt.ua
news site reported on Dec. 20, citing anonymous sources. The bank is demanding
that its shareholders return funds allegedly taken away from the bank and repay
refinancing loans provided by the central bank. Privatbank is also asking the
court to adopt an interim award to arrest the assets of the former shareholders
at a USD 3 bln total value. The bank’s legal advisor in the hearing is Hogan
Lovells, according to dt.ua.
In other news, the finbalance.com.ua news site
reported on Dec. 20 that a local court in Kyiv ruled on Dec. 15 to prohibit
Privatbank, state bodies and their legal and financial advisers to take any
action that affect or may affect the rights and interests of Igor Kolomoisky, a
former shareholder of Privatbank. Also the court ruled to prohibit the
government from paying for the services of law firms Hogan Lovells and Asters,
as well as pay for the services of AlixPartners and Kroll, which are preparing
a forensic audit report on Privatbank.
Recall, Privtabank was declared insolvent on Dec. 18,
2016 and was nationalized three days afterwards. The government has already
contributed UAH 139.2 bln into the bank’s equity since then, and the bank’s
bailed-in creditors contributed another UAH 29.4 bln.
Alexander Paraschiy: This is
merely the beginning of a long legal battle between the Ukrainian government
and former shareholders of Privatbank. Most likely, we will see more aggressive
legal actions from the former owners of the bank, which will complicate the
process of recovery of any of the bank’s assets.
In its battles on different fronts, the Ukrainian
government looks not ready to reach an amicable resolution with anybody anytime
soon, including the bailed-in holders of Privatbank’s Eurobonds. For the
bondholders, the multiple legal actions involving the bank may imply more
delays on hearing their claims to recover the value of their Eurobonds.
