Gazprombank's appeal in $100mln dispute against Amurmetall to be heard July 3
MOSCOW, May 24 - RAPSI. The Far Eastern District Federal Commercial Court will hear on July 3 Gazprombank's appeal against the dismissal of a lawsuit against Amurmetall (Komsomolsk-on-Amur) to recover $102.4 million, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Thursday.
The Khabarovsk District Commercial Court dismissed the banks lawsuit last December. The decision came into effect in March.
The litigation arose after the parties entered into three loan agreements in 2005 and concluded two more in 2008.
Amurmetall entered into a settlement agreement with its creditors in December 2009 - including Gazprombank - as part of its bankruptcy case initiated by the Khabarovsk Territory Commercial Court in June.
According to the settlement, the company agreed to repay its debt to the lenders based on the amortization schedule. The amount claimed by the bank under the bankruptcy procedure was equal to the amount claimed in its lawsuit.
The bank admitted in court that the settlement agreement is being implemented. However, the lawsuit does not aim to terminate the agreement, it said. Rather, the bank hopes to exercise the right to accelerate repayment if the security for the loans is not provided according to the agreement.
The bank believes there is a repayment risk given Amurmetall's financial and business condition. According to a due diligence report, Amurmetall fails to perform settlement provisions such as selecting traders through bidding and ignores tolling when it sells products at market prices.
Amurmetall is the only Russian electrometallurgical works in the Far East. It smelts steel for bar-rolled stock and flat products. The company suspended production due to a lack of operating capital and the unfavorable global situation in May 2009. Although it resumed operations in July, it underutilized its capacities for a long period.