On 28 August 2019, the Business Court of Dnipropetrovsk oblast approved an amicable settlement between the National Bank of Ukraine (NBU) and Nikopol Ferroalloy Plant JSC being a property surety provider for liabilities of CB PrivatBank JSC.
In line with the amicable settlement offered by Nikopol Ferroalloy Plant JSC, the plant commits to repay the debt of PrivatBank on the refinancing loan amounting to the market value of the pledge that the NBU foreclosed in this court proceeding.
Please note, in May 2018, the NBU filed a claim to the Business Court of Dnipropetrovsk oblast on foreclosure of movable property owned by Nikopol Ferroalloy Plant JSC. This property was pledged as collateral for liabilities of CB PrivatBank JSC on the refinancing loan.
For the first time an amicable settlement was reached on the court claim regarding liabilities of CB PrivatBank JSC. This can be attributed to the hard stance and consistency of the NBU as to making former PrivatBank shareholders discharge their liabilities. Today, over two hundred similar cases are pending at different stages of court proceeding filed not only against PrivatBank, but also against banks declared insolvent that yet failed to discharge their liabilities on refinancing loans.
For reference:
In 2018, the NBU filed 148 claims for about UAH 10 billion against a former owner of PrivatBank, Ihor Kolomoiskyi (financial surety provider) and 32 associated companies being property surety providers.
Claims were filed to enforce repayment of refinancing loans issued by the NBU to PrivatBank in the period from 2008 to 2015. In general, claims are filed to enforce repayment of debts on five loan agreements.
Business courts have already passed 21 decisions in favor of the NBU on foreclosure of the mortgaged property under liabilities of PrivatBank of UAH 1.2 billion, 18 decisions thereof came into effect and enforcement documents were filed to the State Enforcement Service to be executed.