Bailed-in clients win Privatbank appeal, Bogolyubov to sue separately

2017/11/9 13:17:55

Analyst: “Whatever the reason behind the questionable ruling in favor of the Surkis family (from a legal standpoint), it only increases the probability that the entire bail-in process can be reversed in the courts, including the full dilution of Privatbank’s Eurobonds.”

 


KYIV, Nov 9, 2017 - Members of the Surkis family, whose deposits of UAH 1.1 bln were bailed-in during the nationalization of Privatbank (PRBANK) in December 2016, won another legal battle against the bail in, the ukranews.com.ua site reported on Nov. 8, Concorde Capital informed clients today, citing the press service of Ukraine’s National Bank. Namely, the Appellate Administrative Court of Kyiv rejected on Nov. 6 an attempted appeal of a lower court ruling that obliged the bank to restore the lost deposits of the family members. The National Bank of Ukraine told Ukrainian News that it has already filed a cassation of the latest ruling to the High Administrative Court of Ukraine.

 

In other news related to the bank, Ukrainian News reported that a former large shareholder of Privatbank, U.K. citizen Gennadiy Bogolyubov, sent the Ukrainian government on Nov. 6 a legal complaint to compensate him for the “unlawful expropriation” of his stake and his deposits in the bank. He promised to sue the government in an international court.

 

Concorde analyst Alexander Paraschiy added: “Whatever the reason behind the questionable ruling in favor of the Surkis family (from a legal standpoint), it only increases the probability that the entire bail-in process can be reversed in the courts, including the full dilution of Privatbank’s Eurobonds. In our view, it is unlikely that Bogolyuybov will succeed in his demands, but it is clear that Ukraine’s legal costs related to the nationalization of Privatbank will be very high.

 

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For more information, link here: www.concorde.ua 

 

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