Sayenko Kharenko represented Oschadbank (the coordinating bank of a consortium of state-owned banks) in a comprehensive debt enforcement strategy that resulted in state-owned banks acquiring ownership of BFC Gulliver, one of the largest commercial properties in central Kyiv.
Within the project, the most effective enforcement scenario was implemented, and a comprehensive response to any attempts by the debtor to block the enforcement procedure was provided:
- comprehensive protection of the bank’s interests was ensured in the preventive restructuring procedure initiated by the debtor in response to the commencement of enforcement proceedings;
- initiation of fictitious court proceedings and application of prohibitions aimed at preventing the acquisition of BFC Gulliver by companies affiliated with the debtor were identified and prevented;
- the debtor’s unlawful registration actions in the state register were effectively challenged before the Ministry of Justice’s Board for the Consideration of Complaints in the Field of State Registration, as a result of which the respective entries were cancelled.
The strategy developed took into account the consortium nature of the financing, the complex collateral structure, including guarantees under English law, the specific features of the legislation on financial restructuring, the seizure and management of assets by ARMA (Asset Recovery and Management Agency), as well as the sanction status of one of the debtor’s indirect owners. All these factors were analysed and integrated into a comprehensive legal response model, which enabled the transfer of ownership rights to the property to the banks to be completed.
Serhii Naumov, Chairman of the Management Board of Oschadbank, said: “The successful implementation of a project of this scale in just a few months is an outstanding achievement. We are grateful to Sayenko Kharenko for effectively protecting the bank’s interests at every stage, which has led to a result that sets an important precedent for the entire banking system of Ukraine. According to our calculations, this will bring billions of hryvnias to the state budget, which can be used to strengthen the country’s defence capabilities and enable the bank to increase its financing of the economy, in particular the defence industry. We will continue to work to recover the entire outstanding debt as part of our overall recovery strategy”.
Olena Sukmanova, partner of Sayenko Kharenko Dispute Resolution Practice, comments: “Protecting state-owned banks’ assets is not only a legal task but also a contribution to the country’s financial stability. We are proud that Sayenko Kharenko is part of this project”.
Oleksiy Koltok, partner of Sayenko Kharenko Dispute Resolution Practice, comments: “This was a case where none of the debtor’s steps went without a response, and all of its moves were anticipated. Working as a team with the banks allowed us to keep the situation under control and achieve the desired result”.
Sayenko Kharenko litigation team working on the project included partners Oleksiy Koltok and Olena Sukmanova, counsel Sergiy Protyven, senior associates Dmytro Shahirmanov and Zhanna Zayets, associate Anastasiia Marushchak and paralegal Olesia Teklishyn.
Oschadbank is one of Ukraine’s largest state-owned banks, playing a key role in the country’s financial stability, defence capabilities and economic development. Founded in 1991, the bank operates over 1,100 branches across Ukraine and provides a wide range of services to individuals, businesses and government agencies.