Summary

Joint-Stock Company 'Commercial Bank Globex' ('Globex'), a Russian entity, and Trellas Enterprises Ltd ('Trellas'), a Cypriot entity, reached a loan agreement, which was to be structured as a sale and re-purchase transaction. Accordingly, Globex purchased 22,000,000 shares of Svayznoy BV, a Dutch entity and subsidiary of Trellas, for the amount of EUR 50,650,000. Trellas had the obligation to repurchase the shares within 30 months for the aforementioned amount plus 11% annual interest (13% in case of default). Mr. Nogotkov, a Russian national, personally guaranteed the contractual obligations of Trellas. The terms were incorporated in the Shareholders' Agreement of 12.10.2012 and the Share Purchase Agreement of 12.10.2012. As the agreed obligations were not kept, Globex initiated arbitration proceedings against Trellas before the LCIA. To the aid of these proceedings, Globex initiated litigation proceedings before the Courts of Cyprus, requesting interim injunctions against Trellas (District Court of Nicosia, Action No. 67/2015). On the grounds that the applicant had not been truthful before the Court when requesting these injunctions, as it had not disclosed that North Financial Overseas Corp, a BVI company, and Promsvyazbank OJSC, a Russian entity, had requested the appointment of a receiver for Trellas from the Courts in Cyprus, the Court dismissed the application (judgment of 20.5.2015). The interim request of prohibiting a law firm from representing Trellas, as that law firm was representing at the same time North Financial Overseas Corp, the main creditor of Trellas, and there was a danger of sensitive/ confidential information being leaked and due to (alleged) conflict of interest, was dismissed. One of the grounds for this dismissal was the lack of proof of such a leak (judgment of 19.6.2015).

Judgments available in Greek, London Court of International Arbitration (LCIA).