11:07 03.02.2021

English court orders ex-owners of PrivatBank to further pay GBP 1 mln of bank's costs

3 min read
English court orders ex-owners of PrivatBank to further pay GBP 1 mln of bank's costs

 At a hearing on February 1, a British court granted PrivatBank's application for a further payment of its costs and ordered its former owners Ihor Kolomoisky and Hennadiy Boholiubov, together with the defendant companies, to pay GBP 1 million to the bank by March 15, 2021.

The bank's press service said on Wednesday that the total amount paid by the defendants together with interest is over GBP 12 million, consisting of interim payments of GBP 4.4 million on account of the bank's legal costs incurred at first instance and in respect of the defendants' unsuccessful attempt to challenge the jurisdiction in the court of appeal, and the return of GBP 7.5 million paid by the bank to the defendants in December 2018, The defendants were also ordered to pay a yet further circa GBP 35,000 in respect of the costs incurred by the bank in making the application.

The press service said that the total amount of the defendants' costs liability will be determined at hearings which will take place between October 2021 and February 2022.

A year later after the nationalization of PrivatBank in December 2016 the bank filed a lawsuit with the English High Court against former owners Kolomoisky and Boholiubov, as well as six British companies they are believed to own or control, and was granted a worldwide freezing order for over $2.5 billion.

However, on December 4, 2018, the English High Court found this lawsuit of PrivatBank to be incompatible with its jurisdiction, considering that it was filed against British companies in order to involve Kolomoisky and Boholiubov in the proceedings. The bank appealed this decision, and the Court of Appeal of England and Wales on October 15, 2019 sided with it. The court's order for a worldwide freeze on assets remained in force until a verdict on the merits was handed down.

The judges of the Court of Appeal confirmed that the bank can pursue its fraud claim for around $1.9 billion, plus interest, against its former owners and others in the English court.

On December 18, 2016, the government of Ukraine, referring to the proposal of the NBU and former shareholders of PrivatBank Kolomoisky and Boholiubov, decided to nationalize this largest financial institution in the Ukrainian market. The ex-owners of the bank consider the nationalization, as a result of which they completely lost their shares, illegal, while PrivatBank and the state demand compensation from them. The parties are currently litigating, both in Ukraine and in foreign jurisdictions.

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