Alexander Stepanov, the Ex-head and the Main Shareholder of Energomash (UK) Limited, is Convicted by the Decision of the High Court of England for Two Years Imprisonment Under the Claim of BTA Bank12.04.2010
Today BTA Bank has informed that on March 31, 2010, the High Court of England has made an order against Alexander Stepanov, the former General Director and main shareholder of Energomash (UK) Limited, the holding company of Energomash Group of companies. According to this decision, Mr. Stepanov has been sentenced to two years of imprisonment for breaching various orders made by the Court in proceedings initiated against Mr. Stepanov by JSC BTA Bank (the “Bank”).
The proceeding has been initiated by BTA Bank in High Court of England in May, 2009 against the company Rolls Finance Limited specially created for deal’s aims, which is a part of Energomash Group of companies, one of the leading world manufacturers in the realm of power mechanical engineering.
The subject of the proceeding were the requirements of BTA Bank under the loan at the rate of US$365 million which has been given to Rolls Finance Limited in August of 2008. The loan was secured by share holding of Energomash (UK) Limited, belonging to the former General Director and the main shareholder of the company – Alexander Stepanov as well as the personal covenant from Mr. Stepanov to repay the loan in the case of default.
Later on, in March 2009 Rolls Finance Limited has defaulted under the loan facility leading the Bank to commence proceedings against Mr. Stepanov. In the course of those proceedings Mr. Stepanov relied on evidence comprising documents allegedly signed at the end of 2008 between him and BTA Bank. These documents essentially changed loan agreement terms to the detriment of the Bank, however, as a result of handwriting examination the given documents have been found forgeries, and the version of events presented by Mr. Stepanov has been denied.
On October 14th, 2009 the High Court of England has made the decision to recover from Mr. Stepanov US$468 million in favor of BTA Bank. Now BTA Bank undertakes various steps on execution of this court decision both in England and Russia.
Moreover, in November of 2009, the Cheryemushkinsky district court of Moscow city has decided in favor of BTA Bank under its plaintiff’s claim regarding the personal covenant of Mr. Stepanov. At present, this decision is being considered in appeal instance office.
It is also necessary to note that English company Energomash (UK) Limited is now in a condition of compulsory liquidation.
In addition to the decision as of October 14th, 2009, the High Court of England by its order has obliged Mr. Stepanov to disclose information on his assets, including his interests in Energomash Group, controlled by Stepanov directly or by implication. The order also prevents Mr. Stepanov from dealing with any of his assets worldwide including his interest in the Energomash Group.
In connection with non-execution of these orders by Mr. Stepanov, the High Court of England on March 31, 2010 found Mr. Stepanov guilty of contempt of court, has issued the arrest warrant of Mr. Stepanov and has sentenced him to two years imprisonment since that moment when Mr. Stepanov is arrested.
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