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London court ruling for Privatbank set to complicate dispute with former owners

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London court ruling for Privatbank set to complicate dispute with former owners

The London Court of International Arbitration ruling, under which Ukraine-based JSC CB PRIVATBANK could repay $460 million on two of its defaulted bonds, is set to further complicate the ongoing dispute between Ukrainian authorities and Privatbank's former owner Igor Kolomoisky, Reuters reported.

The LCIA ruling, which was made in June, stipulates that the payment should only be made on bonds which are not held by Privatbank's former shareholders — something against the bonds' 'pari passu' legal clause, which ensures equal treatment for all holders.

The bonds' trustee asked the London High Court to make a judgment on the matter, with a hearing scheduled for late February 2020, the report noted.

In December 2018, London's High Court reportedly ruled that it has no jurisdiction over the dispute between Privatbank and its former owners. The lender accused its former owners of fraudulent activities that allegedly cost it hundreds of millions of dollars.

The case was heard in London as part of a wider legal battle between Privatbank and the ex-shareholders, which began after the lender was nationalized in December 2016.