The Kyiv Administrative Court of Appeal has confirmed the legality and validity of  NBU Board Decision to put Bank Mykhailivskyi PJSC into resolution and rejected a claim filed by this bank’s former shareholder.

According to case materials, Ecosipan LLC, which is the bank’s shareholder had filed a claim to challenge the regulator’s decision to put Bank Mykhailivskyi PJSC into resolution.

On 15 May 2017, the Kyiv Circuit Administrative Court partially sustained a claim filed by Ecosipan LLC and overruled the decisions of the NBU and the Deposit Guarantee Fund declaring Bank Mykhailivskyi PJSC insolvent and placing the bank into receivership. Howerver, the court refused to require the NBU to resume the operation of Bank Mykhailivskyi PJSC.

The NBU, seeking to challenge the ruling by the court of the first instance, filed an appeal to the Kyiv Administrative Court of Appeal, which  ruled to sustain an appeal in full on 7 August 2017.

On 23 May 2016, the NBU Board issued a decision on declaring Bank Mykhailivskyi PJSC insolvent. On 12 July 2016, the NBU, upon the proposal of the DGF,  issued a decision  on the withdrawal of the banking license and liquidation of this bank.    

As the NBU reported earlier,  a large number of transactions involving the transfer of individuals' deposits from the financial company related to MIKHAYLIVSKIY PJSC to the Bank was performed by the bank.  This move has increased the financial burden for the Deposit Guarantee Fund from UAH 1.6 billion to UAH 2.6 billion.

As of 23 May 2016, 100% of the bank's shares were held by Ecosipan LLC. Mr Viktor Polishchuk held a 92.5% stake in the said company. The remaining 3.9% and 3% of the company's shares were held by Mr Ihor Doroshenko and Mr Viktor Yerasov respectively.