The Delaware Court of Chancery rejected the Privatbank request of the former owners, Ihor Kolomoisky and Hennadiy Boholyubov, to terminate the proceedings on the bank's complaint to recover damages caused before its nationalization at the end of 2016.
According to the bank’s press service, the reason for the refusal are the proceedings in the courts of Ukraine (forum non conveniens).
"According to the решение суда, the Delaware Court of Chancery (USA) will continue to consider case No. 2019-0377-JRS on the civil claim of JSC CB Privatbank against Ihor Kolomoisky, Hennadiy Boholyubov and other legal entities and individuals for, among other things, recovering losses caused by the bank defendants before it was nationalized in December 2016," the statement reads.
Thus, the court granted the request of Privatbank and issued a status quo order imposing a ban on any activities outside the usual economic activities with various assets of the defendants in the United States.
According to the court, this ban is "a guarantee that the plaintiff will be provided with adequate security for claims in the amount of more than $600 million, the compensation of which he is seeking as part of this proceeding."
At the same time, the court granted the defendants' request and suspended the proceedings on a separate part until the related legal proceedings in Ukraine were resolved on the merits.
Context. In May 2019, Privatbank filed a lawsuit with the Delaware Court of Chancery (USA) against the former owners for the amount of "dubious transactions" in the amount of about $750 million.
The bank claims that the former owners invested these funds in real estate in Cleveland (Ohio), Harvard (Illinois), and Dallas (Texas), as well as in ferroalloys companies. According to the lawsuit, the defendants purchased commercial real estate in Cleveland worth millions of dollars and became its largest owners there.
The nationalization of Privatbank was carried out by the government of Ukraine on December 18, 2016, which increased its capital by more than 155 billion UAH.