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$18 mln award for Alfa-Bank from Belarusian utility upheld

13:51 04/07/2012

MOSCOW, July 4 - RAPSI. The Moscow District Federal Commercial Court held for Alfa-Bank in its lawsuit to recover $18 million in credit arrears from Belarus' Brestenergo utility company, the court told the Russian Legal Information Agency on Wednesday.

On January 25, the Moscow Commercial Court partially satisfied Alfa-Bank's lawsuit against Brestenergo and awarded the bank $15.61 million in principal debt, $2.4 million in interest and $500,000 in penalties. The company challenged the decision.

Initially, the bank claimed $21.387 million, but the company partially repaid its debt.

The appeals court upheld the commercial court's judgment.

The bank sought an early repayment of two loans granted in spring 2010 because Brestenergo defaulted in servicing them. The defendant said at the hearing that it does not agree with the plaintiff's claims, stating that the bank did not follow the necessary procedure, as it sent the company an early recovery and not a termination notice.

Belarus faced severe economic strife last year. Its financial system was shaken by a currency deficit and high inflation caused by the Belarusian ruble's sharp devaluation.

Established in 1990, Alfa-Bank is Russia's largest bank in terms of assets, own capital and client accounts. Its primary shareholder is AB Holding (99.89 percent), which is owned by the ABH Holding Corporation, a part of the Alfa Group.

Brestenergo was established in May 1954. It operates power plants and generates, transmits and distributes electric and thermal power.

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$18 mln award for Alfa-Bank from Belarusian utility upheld

13:51 04/07/2012 The Moscow District Federal Commercial Court held for Alfa-Bank in its lawsuit to recover $18 million in credit arrears from Belarus' Brestenergo utility company.
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