The Kyiv Commercial Court has seized the assets of Kostyantyn Zhevago, owner of Finance and Credit Bank, as part of the case to compensate the bank for losses under the claim of the Deposit Guarantee Fund for UAH 46 billion, the Fund's press service reports.
"The Deposit Guarantee Fund (hereinafter referred to as the Fund) has secured the seizure of the assets of the owner of JSC FINANCE AND CREDIT BANK (hereinafter referred to as the Bank), Kostyantyn Zhevago, to secure a claim for compensation for losses of the Bank and its creditors in the amount of almost UAH 46 billion. The relevant decision was made by the Commercial Court of Kyiv at the request of the Fund to secure the claim," the statement said.
In making this decision, the court took into account the evidence provided by the Fund that the defendant had been trying to conceal the fact of ownership of the property belonging to him in various ways for a long time, which could be used to satisfy the Fund's claims against Kostyantyn Zhevago in the future.
Although Article 52 of the Law of Ukraine "On the Deposit Guarantee System" requires managers, owners of substantial participation and ultimate beneficial owners of an insolvent bank or a bank in respect of which a decision has been made to revoke its banking license and liquidate the bank to provide the Fund, upon its request, with information on all property (assets) and liabilities owned by them, Zhevago failed to comply with this requirement.
As a result, the court seized such assets:
- part of the corporate rights in the amount of 50.3% of the authorized capital of Poltava Mining and Processing Plant PJSC;
- part of the corporate rights in the amount of 50.3% of the authorized capital of LLC "Yeristovo Mining and Processing Plant";
- part of the corporate rights in the amount of 50.3% of the authorized capital of "Bilanivsky Mining and Processing Plant" LLC;
These mining and processing plants are indirectly owned by Kostyantyn Zhevago through FERREXPO AG.
In addition, the court prohibited other related companies from disposing of these assets.
"This decision is another step towards protecting the interests of the creditors of Finance and Credit Bank... Now the Fund's claim against the bank's owner is in the first instance in the Ukrainian jurisdiction, and it is extremely important that during the consideration of this case, the assets are preserved in full and can subsequently be used to compensate the losses incurred by the bank's creditors," said Viktor Novikov, Deputy Managing Director of the Fund.
He noted that it was of great importance that the High Court of England and Wales, in its consideration of the case brought by the Fund against the Bank's owner, concluded that there were sufficient grounds for a worldwide freeze on Zhevago's assets.
As reported, on 4 January 2023, the Fund filed a lawsuit with the Kyiv Commercial Court against the Bank's owner, Kostyantyn Zhevago, seeking compensation for losses to the Bank and its creditors in the amount of almost UAH 46 billion. These losses were caused to the Bank by systematic loans to Zhevago's affiliated borrowers and transfers of funds to non-resident companies he owns without proper collateral, which has signs of fictitiousness.
In early January, the Prosecutor General's Office handed France the documents for Zhevago's extradition. Earlier, the French court released Zhevago on bail of €1 million.