Ukraine court rules Privatbank must pay USD 0.6 mln to bailed-in Eurobond holder

The Kyiv Economic Court ruled on March 28 that
Privatbank (PRBANK) must partially satisfy the claim of the holder of bail-in
Eurobonds, the finclub.net news site reported on March 29, citing Ukraine’s
central bank. In particular, the court ordered Privatbank to pay USD 574,000 to
THEO Worldwide Corp. The central bank also reported that an appeal to that
ruling is being prepared. So far, the ruling itself is not available publicly.

In its complaint, THEO Worldwide Corp. had asked the
court to cancel the bail-in of the USD 600,000 in Privatabank Eurobonds that it
held (including USD 400,000 in senior notes due in January 2018 and USD 200,000
in subordinated notes due in February 2021) and compensate losses from the bank
in total amount of USD 663,000, according to information available at the court
registry.

Alexander Paraschiy: This is
just the ruling of the court of first instance, and we can’t say at this point
whether an appellate court will support it. Potentially, it may be an
encouraging precedent for all the Privatbank Eurobond holders.