MOSCOW, December 4 (RAPSI) - Cyprus-based Central European Aluminum Company (CEAC), a subsidiary of En+ owned by Russian oligarch Oleg Deripaska, and one of the major shareholders and creditors of Aluminium Plant Podgorica (KAP) has filed a EUR 100 million lawsuit against the government of Montenegro and a number of state funds, CEAC says in a statement.

CEAC is likely to increase its claim amount.

The claim was filed after Montenegro breached conditions of an amicable agreement on Kombinat aluminijuma Podgorica (KAP) that was signed by CEAC and Montenegro in 2010, which resulted in the bankruptcy of KAP. The commercial trial will be held in Vienna and will be the second arbitration initiated by CEAC against Montenegro. The first trial regarding the international agreement between Montenegro and Cyprus on the protection of rights of foreign investors started last August, with the main hearings to begin next February.

Currently, Montenegro has initiated bankruptcy proceedings over KAP, which resulted in CEAC losing business in Montenegro without receiving any compensation.

“During the sale procedure, the government provided an inaccurate financial statement. As a result, CEAC was deprived of the opportunity to build energy capacities for KAP without proper reason,” Matias Menke representing CEAC in court says. However, CEAC remains open to resolving the issues out of court.

CEAC is a majority stakeholder in KAP, a bauxite mine in Montenegro. KAP's debt to CEAC and En+ is over 90 million euros.