The Supreme Court of the Russian Federation rejected Citibank’s claim for the recovery of 49% of the shares of Russian Standard Bank
[ad_1]
The Supreme Court of Russia refused to transfer the cassation appeal to the London-based Citibank for consideration by the Judicial Collegium for Economic Disputes in the case of recovery of 49% of the bank’s shares.Russian standard“, should from court materials.
The court based its decision on the fact that the arguments in the complaint do not allow us to conclude that there were violations of substantive or procedural law that led to a miscarriage of justice of a significant and insurmountable nature.
Citibank, the pledge holder of the shares and at the same time the trust manager, went to court back in 2020. The bank demanded to recover 49% of the bank’s shares from Rustam Tariko’s structures, and then sell them at public auction. The collateral agreement was concluded under Russian law, while the trust agreement under which Citibank became the collateral manager was concluded under English law.
But initially the first instance refused to satisfy the demands, since the court agreed with the position of the defendants (they were the bank’s shareholders – “Company”)Russian standard” and “Russian Standard – Invest”) that Citibank is not a party to the securities agreement, but only the holder of the pledge, therefore it cannot be recognized as a creditor. Only the debtor’s creditor has the right to recover the collateral, but Citibank has not provided evidence that he is. On the contrary, the papers were not transferred to the trust, since the subject of the trust is not Eurobonds, but rights of claim to Russian Standard and collateral.
The appeal supported this decision, but in October 2021 the Arbitration Court of the Moscow District returned case for reconsideration. Upon re-examination, the court also rejected the London branch, and higher authorities confirmed the legality of the decision.
In October 2021, A-1 company became the largest (more than 30%) holder of defaulted Eurobonds of Russian Standard Ltd., purchasing them from foreign investors.
[ad_2]
Source link
