Court lifts securities commission's ban on circulation of Donetskstal's shares

Donetsk's district administrative court on June 21, 2011, passed a ruling to meet a claim filed by private JSC Donetskstal against the State Commission for Securities and the Stock Market and cancelled the commission's Nos. 562 and 685 decisions dated May 20 and June 7, 2011, on the 12-month suspension of the circulation of the company's shares.

Donetskstal's press service told Interfax-Ukraine it had no information at the moment whether similar bans on the circulation of shares of other enterprises belonging to the Donetskstal Group had been lifted.

The State Commission for Securities and the Stock Market on May 20 unanimously decided to halt the circulation of equities of 12 issuers belonging to the Donetskstal Group for 12 months in order to safeguard the rights of these companies' shareholders and prevent the escalation of a corporate dispute.

"The causes of the dispute at the companies and how it should be settled should be established by a court," the commission said then. "The commission will take further steps in keeping with court rulings."

The commission also said that on May 19, 2011, it received an inquiry from a member of parliament with information about a corporate dispute at the companies affiliated with the Energo Concern (the second name of the Donetskstal group), as well as an appeal to halt the circulation of those companies' equities. Along with the inquiry, the commission obtained a statement from one of the shareholders and a court ruling on that issue, the commission said.

On June 7, 2011, the securities commission reviewed its decision and permitted PJSC Donetskstal's bonds to resume circulation, while retaining a ban on the circulation of the shares of that company and 11 more equity issuers belonging to the Donetskstal Group.

"The commission has concluded that this type of securities [bonds] does not affect the corporate dispute [involving Donetskstal]. Information about the resumption of the circulation of the bonds will be sent to the respective agencies soon," the commission said.

PJSC Donetskstal metallurgical plant was established on the basis of DMZ. It produces metal goods (60% of gross revenues) and sells coke (40%).