The Supreme Court: Donetsk Railway has to return $68 million to Sberbank

Все про економіку та фінанси

On May 14, the Supreme Court refused to satisfy the cassation appeal of "Ukrzaliznytsia" and left unchanged the decision of the courts of previous instances (in the case No. 910/22858/17), which satisfied “Sberbank`s” claim and decided to collect the debt in the amount of USD 68 million (in the equivalent - UAH 1,8 billion) from the state enterprise "Donetsk Railway" under the contract of the credit line No. 70-В/11/66/ЮО of December 29, 2011.

The total amount of claims of “Sberbank” to "Ukrzaliznytsia" and "Donetsk Railway" reaches USD 170 million.

On April 19, 2018, the Supreme Court refused to satisfy the cassation appeal of “Sberbank” and left unchanged the decisions of courts of lower instances in the case No. 910/653/17, which denied to satisfy “Sberbank`s” claim for the collection of USD 55 million from "Ukrzaliznytsia" PJSC under the loan agreement No. 70-В/11/66/ЮО.

According to the court materials, "Donetsk Railway" was the debtor, and the bank appealed to "Ukrainian Railway" PJSC as to an assignee (in the opinion of the plaintiff).

The courts stated that, in accordance with the Law "On specifics of creating a public railway transportation public joint stock company" and the corresponding resolutions of the Cabinet of Ministers, the transfer of the rights and obligations of the State Enterprise "Donetsk Railway" to "Ukrainian Railway" PJSC is associated with inventory, drafting a transfer act, and making the property in the authorized capital of the assignee. This process is not completed, and accordingly, "Ukrainian Railways" PJSC did not become a full-fledged assignee of the "Donetsk Railway".

On February 26, 2019, the Eastern Appeal Economic Court of Ukraine has left unchanged the decision of the Economic Court of Donetsk Region of December 6, 2018 (case No. 905/1562/18), which partially satisfied “Sberbank`s” claim, and decided to collect USD 5.1 million arrears from "Donetsk Railway" under the agreement on opening of the credit line No. 32-В/12/66/Ю of September 21, 2012.

On March 21, 2019, the Economic Court of Donetsk Region has satisfied “Sberbank`s” claim to "Donetsk Railway" (in the case No. 908/5205/14) and decided to collect USD 1,25 million for accrued interest for using the credit line No. 11-В/13/66/КЛ-КБ of April 30, 2013, from the defendant in favor of the plaintiff.

On January 31, 2019, the Northern Appeal Economic Court refused to satisfy the appeal filed by “Sberbank” in case No. 910/537/17 and left unchanged the decision of the Economic Court of Kyiv of March 20, 2017, which refused to satisfy the complainant`s claim to "Ukrainian Railways" PJSC for collecting USD 47, 8 million and UAH 59.6 million of debt of the state enterprise "Donetsk Railway" (the debtor under the agreement on opening of the credit line No. 32-В/12/66/ЮО of September 21, 2012).

On April 22, 2019, The Economic Court of Donetsk Region opened a proceeding in case No.905/2043/18 in the claim of “Sberbank” to the state enterprise "Donetsk Railway" on the collection of USD 50.3 million on several loan agreements dated April 30, 2013 (No. 07-В/13/66/КЛ-КБ, No. 08-В/13/66/КЛ-КБ, No. 09-В/13/66/КЛ-КБ, No. 10-В/13/66/КЛ-КБ, No. 11-В/13/66/КЛ-КБ).

In January 2019, the then President, Petro Poroshenko, signed a moratorium on the collection of assets from "Ukrzaliznytsia" for the debts of "Donetsk Railway".

Previously, "Ukrzaliznytsia" claimed that about 25 thousand railway cars - the property of both UZ and other owners - were left in the occupied part of the Donetsk and Luhansk Regions. "It is about a quarter of the railway cars of the company`s fleet. In addition, a lot of immovable property of the UZ remained there. Approximately 60-70% of the property of "Donetsk Railway" remained there,"- noted in "Ukrzaliznytsia".

As Finbalance wrote, "Ukrzaliznytsia" does not exclude that it will ask creditors for debt restructuring again.

According to "Ukrzaliznytsia", as of December 31, 2018, debt liabilities in uncontrolled state territories included interest loans and borrowings in the amount of UDS 116 million (under 10-12% per annum) and UAH 872 million (under 11-18%).