Press release: Ostchem wins another court battle against Odessa Port Plant

The Court of Appeals of Odessa Oblast has confirmed the decision of the Stockholm Arbitration Institute concerning the debt that Odessa Port Plant (OPP) owns to Ostchem, a company owned by the Ukrainian businessman Dmitry Firtash. This latest ruling practically opens the way to bankrupting the plant. A statement to this effect was made at a governmental meeting by Dmitry Parfenenko, acting Chairman of the State Property Fund (SPF) of Ukraine.

"In July last year, the Arbitration Institute of the Stockholm Chamber of Commerce upheld the claims advanced by Ostchem and acknowledged that OPP has to pay a debt amounting to $193 million plus an overdue payment interest and a fine," reminded Mr. Parfenenko. "On March 3rd this year, the City Court of Yuzhne, Odessa Oblast, granted the petition submitted by Ostchem and allowed the implementation of the Stockholm Court verdict inside Ukraine".

Mr. Parfenenko pointed out that on May 10 the Court of Appeals of Odessa Oblast rejected all appeals made by the SPF and upheld the decision of the Court of Yuzhne, which may be now used by Ostchem to satisfy its claim inside Ukraine. "This decision has practically opened the way to making the city's vital taxpayer and major employer, Odessa Port Plant, a bankrupt", said the acting Chairman of the Fund. However, he promised that the Fund will make everything to make the bankruptcy of Odessa Port Plant impossible.

The Stockholm arbitration authority took the decision in this case on 11 October 2016. The City Court of Yuzhne acknowledged the Stockholm arbitration ruling on March 3rd. According to this October ruling of the Stockholm Institute, OPP has to return to Ostchem a sum of $193.36 million - the principal amount borrowed, and a further sum of $57.8 million - the overdue payment fine. Furthermore, starting from 12 June 2016 this overall sum of OPP's debt acknowledged by the Stockholm Institute has been accruing a 7.5% annual interest as a money usage fee. According to an International Court ruling, the plant must also compensate Ostchem its court expenses (EUR 670 thousand) and arbitration expenses (EUR 240 thousand).


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