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22 February 2012

Court holds Maximov responsible for RUR6 billion in bankruptcy case

On February 21, 2012 the Seventeenth Arbitration Appeal Court (Perm) found Nikolay Maximov to be liable for approximately RUR6 billion in the UralSnabComplect (Maxi-Group’s largest debtor) case (#А60-1260/2009; link to site:

UralSnabComplect LLC was declared bankrupt in February 2009. During the course of the bankruptcy, the bankruptcy trustee was able to establish that in 2006-2007 the Company was involved in a number of economically unjustified transactions leading to RUR6.4 billion in liabilities.

Money received from different Maxi-Group companies was transferred on the same day to the accounts of other legal entities controlled by Maximov outside of Maxi-Group. It was never repaid, causing losses to Maxi-Group businesses and to UralSnabComplect, burdened by unserviceable debt.

As N. Maximov, Maxi-Group’s shareholder (through figureheads) and S. Mironov, one of Maxi-Group’s managers, were in the position to give orders to UralSnabComplect and determine the course of its action, UralSnabComplect’s bankruptcy trustee filed a suit requesting that they be held subsidiary liable.

At the first instance hearing, the court did not satisfy the liability. It did, however, confirm that N. Maximov was in the position to impact UralSnabComplect’s actions.

The court of appeal reviewed the case and ruled to hold N. Maximov liable. The court therefore established that Maxi and UralSnabComplect management acted in the interest and by the will of Maximov.

The International Commercial Arbitration Court (ICAC) at the Chamber of Commerce & Industry (CCI) had previously supported Maximov’s position by including the debt as a Maxi-Group asset in the amount of RUR6.4 billion into NLMK’s debt structure under the Share Purchase Agreement.