Statement of BTA Bank on Asset Recovery Results for the first half of 201605.09.2016 12:43:11
BTA Bank JSC (hereinafter - the Bank) reports the following:
For the period from 01.01.2014 to 01.07.2016, under the direct leadership of Mr. K.Kh. Rakishev, the Bank carried out a significant asset recovery in the total amount of $1.4 billion. When Mr. K.Kh.Rakishev assumed the office of the BTA Group, the effectiveness of asset recovery increased significantly.
In the framework of the execution of judgments of the High Court of England and Wales, judgments of the Russian Federation, Ukraine and Kazakhstan Courts, the asset recovery was performed in the form of cash, recognition of the property, as well as consolidation in shares charged in favour of Bank in authorized capital of legal entities.
In this case, the amount which shall be returned by Mr. M. Ablyazov according to the order of the English court in favour of BTA with the interest is $4.8 billion.
1. The Bank's Claims and Decisions thereof
The United Kingdom:
- On July 17, 2015, the English High court issued the assets freezing order which were directly or indirectly owned by Mr. M.Ablyazov and Mr. I.Khrapunov. On March 23, 2016, the commercial Court of England and Wales delivered a judgment according to which Mr.I. Khrapunov shall provide all the data under the previously issued Order for disclosure of all information without exception about his assets and the assets that were managed by him on behalf of Mr. M.Ablyazov. Moreover, the court ordered Mr. I.Khrapunov to pay court fees incurred by the Bank.
- The Federal District court of New York (hereinafter - the Court) has satisfied the application of Almaty Akimat for taking to court of Mr. I.Khrapunov, Mr. V.Khrapunov and Mr. M.Ablyazov as defendants and the application of BTA for entry of the Bank in the judicial process as a party. In this case, the application of Triadou (a legal entity on the territory of the USA controlled by Mrs. M.Ablyazov and I.Khrapunov) for the termination of the proceedings due to the lack of jurisdiction of the New York Court was dismissed.
The Court accepted the arguments of the Bank and the Almaty Akimat (hereinafter – the Kazakhstan party) which allows plaintiffs to force this process on the basis of the Federal law “On combating organized crime” on charges of illicit enrichment and embezzlement. In this regard, the Court approved the request of the Kazakhstan party on interim measures and extended its previous asset freezing order.
In accordance with the procedural laws of the USA, then the procedure of the disclosure of information shall take place that is positive dynamics in the complex process of returning assets from the United States abducted by Mrs. M.Ablyazov and I.Khrapunov. The disclosure of information by the defendants will be a basis to identify, freeze and gain control over assets in respect of which now BTA has no information.
- On June 13, 2016, BTA Bank filed a claim to the U.S. district court in Virginia against Ms. Gaukhar Kusainova, a sister of Mr. Mukhtar Ablyazov, for damages and meeting other requirements of BTA with respect to those actions of Ms. G.Kusainova, which, in the opinion of the Bank, are illegal and associated with providing support of Mr. M.Ablyazov with transactions of his assets.
The basis of the claim was evidence that Ms.Gaukhar Kusainova used funds in the total amount of over $6 million received in the form of gifts, certain cash, and transactions from Mr. M. Ablyazov. Ms. G.Kusainova had to know about the nature of these funds, which were further used for financing her business and acquisition of several properties in the United States. Ms. G.Kusainova also knew about the proceedings against Mr. M.Ablyazov but she did not try to return the funds acquired in a dishonest way, and did not try to inform the Bank, while her brother had committed fraud against BTA.
2. Assets’ recovery in terms of collecting the Bank's shares in the authorized capital of legal entities
The decisions of the High Court of England and Wales according to which a complex of measures was performed to recovery the assets of the Bank are:
- 50% shares of BTA Bank OJSC (Ukraine) in the amount of $31.2 million were transferred to BTA Bank JSC (Kazakhstan), the shares of BTA Bank OJSC (Ukraine) owned by Ukrainian legal entities which were previously under the control of Mr. M.Ablyazov were also returned. As a result, BTA Bank JSC (Kazakhstan) consolidated 99.99% of shares of BTA Bank OJSC (Ukraine).
- The procedure to purchase the shares in the authorized capital of BTA Bank CJSC (Belarus) in the amount of 100% by withdrawal of shares of BTA Bank CJSC (Belarus) owned by the legal entity which were previously under the control of Mr. M.Ablyazov is being performed.
- 35% shares of BTA Bank CJSC (Armenia) owned by legal entities – residents of the Republic of Austria and the Russian Federation which were previously under the control of Mr. M. Ablyazov were returned to BTA Bank JSC (Kazakhstan). According to the results of the activities, BTA Bank JSC (Kazakhstan) will consolidate 100% shares of BTA Bank CJSC (Armenia).
In addition, the Bank informs that the judicial restraint on managing of 71% shares of BTA Bank CJSC (Kyrgyzstan) which was made due the raider actions of persons associated with Mr. M. Ablyazov was lifted. Today BTA Bank JSC (Kazakhstan) is a full shareholder of BTA Bank CJSC (Kyrgyzstan) and responsible for direct management of the designated financial institution.
BTA Bank states:
"We accept all court decisions, including decisions of the English and American courts on asset recovery initially owned by the Bank, and illegally withdrawn in one way or another by Mr. M. Ablyazov, which shall be returned the Bank. These decisions emphasized the legitimacy of the legal proceedings against Mr. M.Ablyazov initiated by the Bank that will continue to work in this direction."
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