A number of holders of PrivatBank`s Eurobonds have initiated litigation in the London Court of International Arbitration (LCIA) with the intention to challenge the forced conversion of their bonds into capital after PrivatBank`s nationalization, Managing Partner at Suprema Lex law firm Viktor Moroz told UNIAN.
”After the parties to the dispute have agreed on the said issues, the court will be able to proceed with the consideration of the merits of the dispute, while Eurobond holders hope to receive fair compensation from the bank for their bonds, forcibly converted into the bank`s capital,” Moroz explained.
He said that the legal proceedings were initiated on behalf of the holders of PrivatBank`s Eurobonds totaling UAH 17 million, or US$644,183 (the first and second issues).
”The remaining holders of Eurobonds, united in a single group, plan to initiate a litigation through trusts after its replacement, due to the conflict of interests between the trusts and the bank,” the lawyer added.
As UNIAN reported, the nationalized Privatbank planned on June 5 to hold a meeting of holders of its Eurobonds of the two issues worth $375 million with maturity in 2018 to appoint Madison Pacific Trust Limited as a new trust manager instead of the current Deutsche Trustee Company.
December 18, 2016, the Cabinet decided to nationalize Ukraine`s No. 1 bank, Dnipro-based PrivatBank, being guided by the recommendations of the National Security and Defense Council.
Later, PrivatBank replaced bonded obligations for $595 million to the SPV (UK) for loan participation notes.