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NLMK appeals dismissal of $7.81 mln suit against steel tycoons

13:00 16/02/2012

MOSCOW, February 16 - RAPSI. A commercial court will return on February 22 to the cassation appeal by Novolipetsk Iron & Steel Corporation (NLMK) against the dismissal of $7.81 million lawsuit against former Maxi Group top managers Nikolai Maximov and Alexander Loginovskikh, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Thursday.

NLMK is Russia's leading steelmaker.

NLMK filed its lawsuit against Maximov and Loginovskikh in the interest of Maxi-Group. NLMK claims Maximov inflicted losses on Maxi Group by transferring corporate money to the bank account of Metallurgical Holding, owned by Maxi-Group. Then the funds were transferred to his wife's account. The interest was remitted to Loginovskikh.

The lawsuit reads that Maximov created artificial debts receivable.

Maximov argued that the disputable operations were a part of Maxi Group's investment program. Besides, the funds were later returned to the Metallurgical Holding's account, he added.

The dispute between the parties has lasted for several years. NLMK acquired in December 2007 a 50-percent plus one share stake in Maxi-Group. In the result of the deal NLMK unified the enterprises ranging from recycling to producing steel production.

The shares were acquired on the basis of an agreement that did not establish its fixed price. The final calculation has been postponed until the completion of a financial and legal inspection of the companies making up Maxi-Group. Maximov was granted an advance payment worth about 7.3 billion rubles ($242.62 million). Eventually, the disagreements between the parties as to the amount of the transaction led to a number of legal disputes.

The Moscow Commercial Court found Maxi-Group bankrupt in August and opened bankruptcy proceedings against the company in August.
Maxi-Group is a major steel products manufacturer in Russia

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NLMK appeals dismissal of $7.81 mln suit against steel tycoons

13:00 16/02/2012 A commercial court will return on February 22 to the cassation appeal by Novolipetsk Iron & Steel Corporation (NLMK) against the dismissal of $7.81 million lawsuit against former Maxi Group top managers Nikolai Maximov and Alexander Loginovskikh.
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