BGP Litigation lawyers have defended a Netherlands company, a majority shareholder of one of the largest Russian banks, in a dispute for the recovery of RUB 282 billion in damages. In December 2018, Promsvyazbank PJSC (“PSB”) seized a commercial court with a claim seeking to recover RUB 282 billion from its ex-shareholders and top managers. Twelve individuals and a Netherlands company, which held more than 50% of shares in PSB, acted as the respondents in this case.
The claimant sought damages caused by non-arm’s length transactions, issuance of non-performing loans, and raising subordinated funding, as well as under Article 189.23 of the Bankruptcy Law in view of PSB’s rehabilitation by the Central Bank of Russia back in December 2017. It took the Moscow Commercial Court more than 3.5 years to consider this case.
In the proceedings, one of the key issues was the applicability of Article 189.23 of the Bankruptcy Law. The case was exacerbated by unfavourable practice of the Russian Supreme Court in similar disputes. Nonetheless, our team has convinced the court that full damages arising out of rehabilitation (in the amount of nearly RUB 90 billion) are not subject to recovery.