RUSSIA: A U.S. DISTRICT COURT JUDGE HAS UPHELD BANKRUPTCY COURT ORDER TEMPORARILY BLOCKING AUCTION OF MAIN PRODUCTION SUBSIDIARY OF RUSSIAN OIL GIANT YUKOS

Record ID: 566203

  • Title: RUSSIA: A U.S. DISTRICT COURT JUDGE HAS UPHELD BANKRUPTCY COURT ORDER TEMPORARILY BLOCKING AUCTION OF MAIN PRODUCTION SUBSIDIARY OF RUSSIAN OIL GIANT YUKOS
  • Date: 20th December 2004
  • Summary: (W1) MOSCOW, RUSSIA (RECENT, DECEMBER 17, 2004) (REUTERS) 1. SLV PEOPLE WALKING BY THE YUKOS HEADQUARTERS IN MOSCOW; SLV PEOPLE ENTERING AND LEAVING YUKOS HEADQUARTERS IN MOSCOW; SCU SIGN "YUKOS" ON THE BUILDING; SLV EXTERIOR OF YUKOS HEADQUARTERS IN MOSCOW (4 SHOTS) 0.23 2. SCU ELECTRONIC SCREEN IN THE OFFICE OF TROIKA DIALOG INVESTMENT BANK; BROKERS TALKING TELEPHONE; SCU BROKER SITTING IN FRONT OF COMPUTER SCREEN (3 SHOTS) 0.40 (W1) MOSCOW, RUSSIA (RECENT, DECEMBER 17, 2004) (REUTERS) 3. SLV EXTERIOR OF COURT BUILDING; MV POLICEMEN AT ENTRANCE TO COURT BUILDING; SLV PROTESTERS SUPPORTING FORMER CEO OF YUKOS MIKHAIL KHODORKOVSKY/ PROTESTERS WITH BANNERS AND PORTRAITS OF KHODORKOVSKY OUTSIDE COURT BUILDING (6 SHOTS) 1.12 (W1) MOSCOW, RUSSIA (RECENT) (REUTERS) 4. SCU FORMER CEO OF YUKOS MIKHAIL KHODORKOVSKY AND CO-DEFENDANT PLATON LEBEDEV IN COURT 1.27 (W1) NEFTEYUGANSK, SIBERIA, RUSSIA (FILE - SEPTEMBER 2004) (REUTERS) 5. SLV YUKOS'S MAIN OPERATING UNIT, YUGANSKNEFTEGAZ/ OIL PUMPS IN OPERATION; NEFTEYUGANSK SIGN IN FIELD (5 SHOTS) 1.55 6. WIDE EXTERIOR OF YUKOS OFFICES IN NEFTEYUGANSK; YUKOS SIGN ON BUILDING 2.04 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 4th January 2005 12:00
  • Keywords:
  • Location: MOSCOW, RUSSIA AND NEFTEYUGANSK, SIBERIA, RUSSIA
  • Country: Russia
  • Reuters ID: LVAAXOHW4FRYGIB2UDLZFO4LMTWE
  • Story Text: A U.S. district court judge upheld a bankruptcy
    court order temporarily blocking the auction of the main
    production subsidiary of Russian oil giant YUKOS.

    A U.S. district court judge on Saturday (December
    18, 2004) upheld a bankruptcy court order temporarily blocking
    the auction of the main production subsidiary of Russian
    oil giant YUKOS.

    U.S. District Court Judge Nancy Atlas rejected an
    appeal by Russian natural gas monopoly Gazprom to allow the
    auction, which Russia said would go forward on Sunday
    (December 19) in spite of the bankruptcy court's order.

    Atlas heard arguments on Saturday on Gazprom's appeal
    to overturn the bankruptcy court's 10-day restraining order
    against the sale, in which the state-owned Gazprom is seen
    as a favourite to win the bidding.

    "I am not going to vacate the temporary restraining
    order," Atlas said in announcing her decision at an
    emergency hearing in Houston on Saturday night.

    YUKOS filed for bankruptcy protection in the United
    States on Tuesday (December 14) and the restraining order
    against the sale was issued by the U.S. bankruptcy court in
    Houston on Thursday (December 16) . Moscow has said U.S.

    courts have no jurisdiction in Russia.

    YUKOS made its surprise bankruptcy protection filing in
    a bid to block the sale by arguing that the $8.65 billion
    opening bid price set by the Russian authorities would
    destroy shareholder value.

    The temporary restraining order was made against
    Gazprom and a consortium of banks that would finance a
    deal. YUKOS, which has no business interests in the United
    States, hoped the Western banks would obey U.S. law and
    deny funds for the sale.

    Lawyers for Gazprom and Deutsche Bank AG, which is leading the
    consortium of banks financing Gazprom's bid,
    argued that U.S. courts had no jurisdiction in the case.

    The sale is intended to recover part of a massive $27.5
    billion back-tax claim against YUKOS, one of Russia's
    biggest oil companies.

    The firm is widely seen as a victim of a Kremlin
    campaign to crush the political ambitions of its main
    shareholder, Mikail Khodorkovsky, and regain control over
    strategic economic sectors sold off in privatizations in
    the 1990s.

    Lawyers for YUKOS argued the temporary restraining
    order was not subject to appeal under court rules because
    it was not a permanent injunction.


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