MOSCOW, October 18 - RAPSI. The Supreme Commercial Court has registered Gazprombank's application for the review of a lower court judgment rejecting its $105.4 million claim against Amurmetall, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com).
In July, the Far Eastern District Federal Commercial Court upheld the lower court's judgment rejecting the claim and turned down the bank's appeal.
The Khabarovsk District Commercial Court dismissed the bank's lawsuit last December. The decision took effect in March.
The litigation arose after the two parties signed three loan agreements in 2005 and concluded two more in 2008.
Amurmetall signed a settlement agreement with its creditors in December 2009 - including Gazprombank - as part of its bankruptcy case, initiated by the Khabarovsk Territory Commercial Court in June.
According to the settlement, the company agreed to repay its debt to the lenders based on the amortization schedule. The amount claimed by the bank under the bankruptcy procedure was equal to the amount claimed in its lawsuit.
The bank admitted in court that the settlement agreement was being implemented. However, the lawsuit did not aim to terminate the agreement, it said. Rather, the bank hoped to exercise the right to accelerate repayment if security for the loans was not provided according to the agreement.
The bank believed there was a risk that it would not be repaid in full, given Amurmetall's financial and business condition. According to a diligence report, Amurmetall failed to undertake settlement provisions such as selecting traders through bidding and ignored tolling when selling products at market prices.
Amurmetall is the only Russian electrometallurgical plant in the Far East. It melts down steel for bar-rolled stock and flat products. The company suspended production due to a lack of operating capital and the unfavorable global economy in May 2009. Although it resumed operations in July, it underutilized its capacities for a long period after the resumption.
