2 April 2011
NLMK comments on ICAC decision
On March 31, 2011 the International Commercial Arbitration Court (ICAC) of the Chamber of Commerce and Industry of the Russian Federation partially satisfied the claims of Nikolay Maximov, Maxi-Group’s minority shareholder, against NLMK. NLMK’s motions to suspend the ICAC proceedings until the resolution of Maxi-Group bankruptcy hearings before the Moscow City Arbitration Court, as well as to disqualify the current arbitration panel, were denied.
Having studied the ICAC decision, NLMK believes that it is biased, is not based on applicable law and disregards a substantial body of presented evidence. In violation of the principle of equality, the arbitration panel has relieved Mr. Maximov’s from proving the fulfillment of his obligations under the Agreement, which were a prerequisite and a condition precedent to paying the purchase price for Maxi-Group shares. The arbitration court also refused to consider issues related to the compliance by Mr Maximov with his representations and warranties under the Agreement. NLMK believes that the unequal treatment afforded it in the arbitration proceedings confirms its concerns regarding the fairness, professionalism and independence of the members of the arbitration panel.
NLMK will challenge the ICAC decision in accordance with the established procedure. NLMK will continue pursuing claims against the former owner of Maxi-Group and its former management for the actions perpetrated against NLMK interests.