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NLMK disputes dismissal of $19.72 mln action against Maxi-Group heads

17:10 06/04/2012

MOSCOW, April 6 - RAPSI. The Supreme Commercial Court registered an application filed by Novolipetsk Iron & Steel Corporation (NLMK) to review the dismissal of its lawsuit against Maxi-Group top managers on the recovery of $19.72 million in favor of Maxi-Group.

On May 23, 2011, the Moscow Commercial Court dismissed the NLMK lawsuit against former Maxi-Group top managers. However, NLMK and Maxi-Group, a third party in the case, disputed the decision in the cassation instance. The Moscow District Federal Commercial Court confirmed the dismissal of the lawsuit against NLMK on February 10.

According to NLMK, its lawsuit stemmed from a contract between Maxi-Group and Alfa- Bank, in which the bank agreed to provide equity sale consultation services to then-President Maximov.

The defendants contested the argument, maintaining that the services were rendered to Maximov in his capacity as Maxi-Group president and caused no losses to the company.

In addition, the defendants argued that NLMK was not a Maxi-Group shareholder on the date when Alfa-Bank's contract was signed, and therefore the lawsuit was groundless.

The court decision also reads that the statute of limitations has expired. Alfa-Bank is a third party to the dispute.

In July 2011, the commercial court dismissed another lawsuit on recovering losses worth 235.026 million rubles ($7.96 million) from the same codefendants. The decision came into effect last October.

The dispute between the parties has lasted for several years. NLMK acquired in December 2007 a 50 percent plus one share stake in the Maxi-Group. As a result of the deal, NLMK unified enterprises ranging from recycling to steel production.

The shares were acquired on the basis of an agreement that did not establish a fixed price. The final calculation has been postponed until the completion of a financial and legal inspection of the companies making up Maxi-Group. Maximov was granted an advance payment worth about 7.3 billion rubles ($247.3 million). Eventually, the disagreements between the parties as to the amount of the transaction led to a number of legal disputes.

Maxi-Group is a major steel products manufacturer in Russia. NLMK is Russia's leading steelmaker.

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NLMK disputes dismissal of $19.72 mln action against Maxi-Group heads

17:10 06/04/2012 The Supreme Commercial Court registered an application filed by Novolipetsk Iron & Steel Corporation (NLMK) to review the dismissal of its lawsuit against Maxi-Group top managers on the recovery of $19.72 million in favor of Maxi-Group.
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