The American creditor puts pressure on the court to gain control over the Ukrainian company - media

Friday, 10 November 2023, 14:09

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American creditors Argentem Creek Partners and Innovatus launched a large-scale PR campaign to put pressure on the court and the prosecutor's office on the eve of the next court session in a dispute with the Ukrainian GNT Group, the UNIAN writes.

Creditors accused the Ukrainian holding of unlawful illegal actions on the eve of the start of sessions in the Supreme Court of the cassation complaint about the bankruptcy of the GNT Group companies: Olimpex Coupe International and Metalsukraine Corp Ltd.

However, as the publication points out, the statements of Argentem Creek Partners and Innovatus are nothing more than a black PR campaign and pressure on the court and the prosecutor's office.

As noted, there are several legal aspects of the unlawfulness of bankruptcies of GNT Group Ukrainian companies:

The agent of Argentem Creek Partners - the Madison company did not have the right to initiate bankruptcy in the courts, as it is not a creditor of the companies.

According to the credit agreement, the dispute between the parties must be resolved by arbitration following the Rules of the London Court of International Commercial Arbitration (LCIA).

On February 7, 2023, the District Court of Nicosia (Cyprus) passed an order prohibiting the creditor Argentem Creek Partners and its agent Madison from taking actions aimed at taking over the GNT terminals.

It is possible to initiate a bankruptcy case if the company does not repay the stated claims, and in the case of Olimpex Coupe International and Metalsukraine Corp Ltd, the non-payment of claims occurred since such claims were not paid by the directors appointed by the initiating creditor, despite on availability of funds from companies.

GNT Group's indebtedness to Argentem Creek Partners and Innovatus is not undisputed, meaning one that is confirmed by court decisions, and in respect of which there is a legal dispute, that is, an existing dispute of right.

The media concludes that Argentem Creek Partners is trying to use pressure to take ownership of a devalued business whose real value is four times greater than the $100 million debt that could have been repaid by GNT Group. The publication reminds that the generally accepted tendency of investors to restructure the loans of Ukrainian companies in the last one and a half years. But American creditors ignored this opportunity.