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Sunday 17.12.2017 | Name days: Teiksma, Hilda
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Parex calls for Latvian ministries' assistance in department store Moskva insolvency case

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Christopher Gwilliam

Parex Bank's board chairman Christopher Gwilliam

After facing allegedly discriminatory treatment in Moscow department store Univermag Moskva insolvency process, the joint stock company Parex Bank has turned with an official request for assistance to Latvia Foreign Affairs Ministry, Justice Ministry and the Finance Ministry.

Parex Bank has filed a claim to the Russian Federation Supreme Arbitration Court on reviewing the appeal and cassation instance court’s ruling.

The Banking Law was violated after Moscow District Federal Arbitration judge suspended the execution of appellation instance’s ruling, thus revoking the unlawful Moscow Arbitration Court’s decision on declaring Univermag Moskva as bankrupt and announcing a tender procedure. As a result of such decision, the bank’s as the largest creditor rights to fully participate in the insolvency proceedings were denied, creating unjustified advantages for the creditors’ group seeking to attain Univermag Moskva bankruptcy and a closed sale of the company’s assets, Parex Bank informs.

This is not the first foreign investors’ rights infringement within the Univermag Moskva project and can create a dangerous precedent. Discrimination of foreign investors without providing equal rules not only damages Latvia – Russia’s intergovernmental relations, but is a negative signal to foreign investors. We are surprised by such blatant and violent breach of foreign investors’ rights from the judicial authorities in a country actively trying to join the World Trade Organization, emphasizes Christopher Gwilliam, chairman of the bank’s executive board.

Aiming to prevent further judicial discrimination of the bank as the Republic of Latvia’s resident from certain Russia’s judicial authorities and to address the extreme and unacceptable situation, Parex Bank has turned with a formal request for assistance and support to the Latvian Foreign Affairs Ministry, Justice Ministry and the Finance Ministry.

The Foreign Affairs Ministry has already initiated the review of matter at the Republic of Latvia – Russian Federation Intergovernmental Commission. It is planned in the nearest future to turn to the European Commission in Brussels and its delegation in Moscow.

Good relations with the Russian Federation in a form of judicial cooperation are very important for Latvia, so we are pleased with the Latvian government’s understanding and support in tackling the problem, Gwilliam indicates.

Parex Bank has grounds to believe that the judicial independence principle has not been observed, requiring the court to ensure fair process and observance of both sides’ rights. Therefore, most likely the bank cannot count on a fair, lawful, impartial and independent action of the Russian Federation’s judicial authorities.

In fact, this deliberately and unreasonably delayed Univermag Moskva insolvency process brings us back to the year 2010, when vital decisions on the company’s future had to be taken. All this time Univermag Moskva could have operated and restored its solvency, thus finding a way to repay its liabilities, Gwilliam points out.

 

 


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