Court cancels auction to sell corporate rights of Belvedere S.A. in Ukraine

The business court of appeals in Kyiv on April 6 upheld a counterclaim of France's Belvedere S.A. on asking it to revoke the results of an auction to sell its corporate rights in Ukraine.

"The court declared that the auction to sell Italiano In Ukraine LLC and Boisson Elite LLC held on November 13, 2014 was held in violation of Ukrainian law," reads a report issued by the company.

Belvedere S.A. said that the conditions of the auction were defined without notifying the company and agreeing them with it which resulted in the sale of the assets appraised at UAH 65 million for only UAH 254,000.

"The business court of appeals in Kyiv ruled that property is [to be] returned to the foreign investor," the company said.

As reported, in late 2011 the business court of Kyiv approved a register of claims made by the creditors of Belvedere Ukraine worth UAH 65.345 million. The primary claim on the opening of a bankruptcy case against Belvedere Ukraine was sent by Radinad Media LLC to court. The court recognized the claims of the creditor, worth UAH 9.39 million. The liquidation procedure for Belvedere Ukraine was subsequently commenced.

Avigal LLC was the winner of the auction to sell the corporate rights of Belvedere S.A. The company received the rights to Italiano In Ukraine LLC and Boisson Elite LLC (subsidiaries of Belvedere Ukraine).

Belvedere Group was founded in 1991 in France. The company is one of the largest producers and distributors of alcohol in France and Poland and it is present in over 100 countries. It has production facilities in Poland, Lithuania, Bulgaria, Spain, the United States, Brazil and France. In November 2007, the group acquired Cherkasy Liquor and Vodka Plant, renaming it Boisson Elite Belvedere Group.