15th Oct 2014 09:54
LONDON (Alliance News) - Urals Energy Public Co Ltd Wednesday said it is confident it will prevail in three ongoing litigation cases spanning Cyprus, Russia and the UK.
On October 9, a Russian court issued a decision in favour of Urals Energy in its case against Komineftegeofizika in relation to the debt it owes to Urals Energy, the company said. The Russian court has awarded Urals Energy the sum of RUB32 million, together with 8% interest until full payment has been received by Urals Energy.
At the same time, the court also dismissed KNGF's counter-claim that Urals Energy's claim was itself invalid. KNGF has the option to appeal the Russian court's ruling.
The debt relates to amounts owed to Urals Energy by KNGF since 2003. KNGF were on an agreed repayment schedule but, following a KNGF shareholder dispute, payments ceased, forcing Urals to seek repayment through the Russian court.
A separate case, which began in December 2010, regards a case that was filed against Urals relating to a claim that the company owes USD41.7 million to UEN Cyprus Ltd via an alleged debt repayment agreement, Urals Energy said.
On February 20, Urals filed a claim against four companies, including UEN, seeking the disclosure of documents relating to the alleged debt repayment agreement and is preparing to submit its Statement of Claim that challenges the validity of the claim.
A third ongoing case, which saw the London Court of International Arbitration rule in favour of Urals against Viatcheslav Rovneiko, also is ongoing, Urals Energy said. The London Court ruled that Rovneiko is due to pay Urals USD6.8 million, plus interest, which is amounting to USD2,526 per day.
Payment has still not been recieved, and Urals has applied for a Reconginition of Arbitration Award to enforce the ruling to the Limassol court in Cyprus, where Rovneiko is based. Following the application, Limassol Court has issued asset freezing orders against Rovneiko, preventing him from alienating any of his assets in Cyprus.
Rovneiko has opposed this, and Urals are waiting for a judgement in hope of receiving the funds it is owed.
"The continuation of these legal cases is expected to continue for 2014 and most of 2015 and will require the company to continue to devote considerable time and resources. The company believes, however, that it shall prevail in all three legal cases and confirms what it has stated before - that the ADRA [UEN case] is a forgery, which the company does not recognise and is committed to see its full vindication against Mr. Rovneiko and UEN Cyprus Limited," said the company in a statement.
Urals shares were down 4.4% to 4.70 pence per share Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Urals Energy Plc