Former PrivatBank top managers attempting to challenge NBU decision on nationalization in court
Kyiv's business court in a ruling dated January 2, 2020 launched proceedings in case No. 910/18214/19 opened under a claim of former board chairman and ex-minority shareholder in PrivatBank (Kyiv) Oleksandr Dubilet (earlier held 2.7249% of shares in the bank) against the state in relation to the nationalization of the bank, Finbalance ezine has reported.
According to the report, at the end of December 2019 similar claims were also filed by ex-minority shareholders and former top managers of PrivatBank: Tymyr Novikov (as of March 31, 2016 held 1.2625% of the shares), Oleh Gorokhovsky (0.3236%), Volodymyr Yatsenko (0.3229%), Tetiana Huryeva (0.2422%), Liudmyla Shmalchenko (0.1614%) and others. Defenders in the case are the Deposit Guarantee Fund, Finance Ministry of Ukraine and state-owned PrivatBank.
According to court materials, the former top managers of PrivatBank challenge, among other things, the bail-in procedure – the forced conversion of their deposits into new shares of the bank, which were issued in December 2016 during the nationalization of the financial institution, and then were bought by the state (represented by the Ministry of Finance) for 1 UAH with all the "old" shares of the bank (total – 100%).
As reported, in 2017-2018, the former minority shareholders of PrivatBank filed lawsuits against the state with the Pechersky district court of Kyiv, but the court refused to hear the relevant claims, citing the fact that such disputes should be resolved in business courts.
At the same time, in December 2019, several companies, which funds also fell under the bail-in, filed lawsuits against PrivatBank and the Finance Ministry with the Kyiv business court. Among them are Chem-Oil-Transit-Ukraine LLC, Songo LLC, FC Finilon LLC, Revatis LLC, Partner-Expi LLC, Paritet LLC, KS Group LLC, Hangli International Holdings Limited, Craentex Investments Ltd, Hetterington Group Ltd, Birgminton Investing Inc., Veliona Trading Ltd, and Saviento Investments Ltd.