More Anglo debt cases begin in Kiev over Quinn properties

ANOTHER TWO sets of legal proceedings were initiated in Kiev during the week as the Irish Bank Resolution Corporation (formerly Anglo) continues to try to seize control of a shopping centre there which produced rent of $10.8 million (€8 million) last year.

The property is one of a number of European properties the bank is trying to seize but which the family of bankrupt businessman Seán Quinn is trying to hold on to.

On Wednesday, two more individual shareholders in Univermag Ukraina, the Ukrainian company that owns the property, brought proceedings contesting the appointment in November of a new general director, Rostyslav Levinzon, to run the company.

This brings the number of such actions to five. In two cases, minority shareholders said they had not been aware the cases had been brought in their names. They had granted power of attorney to lawyers as they believed their shares were being purchased.

In one case, an elderly woman told the court she had been at the shareholders’ meeting and voted in favour of the appointment of Mr Levinzon. Nevertheless the case was not thrown out, even though the parties that initiated the case were not at the hearing.

Quinn Holdings Sweden (QHS), now under the control of a share receiver appointed at the request of the State-owned IBRC, owns almost 93 per cent of the Ukrainian company, with the rest of the shares being owned by almost 4,000 people, most of whom are former employees.

The Quinn Group bought the interest in the mall in 2006 and the IBRC holds security over the property and the companies involved in its ownership. However, the Quinn family is claiming it should not have to repay loans it owes IBRC on the basis that they are “tainted with illegality”. The matter has yet to be tried in court.

A press release in Ukraine on behalf of QHS said the “surge of minority shareholders’ appeals to the court is caused by the efforts of certain persons to obstruct QHS control over the company”.

A consequence of the actions is that Mr Levinzon’s appointment is being prevented from being officially registered, which in turn is preventing him from seizing control of Univermag and the rent it is receiving. It is believed by the bank that Larisa Yanez Puga, whom Mr Levinzon was to replace, remains in control of Univermag.

The attendance of the Kiev police was needed to ensure one of the Univermag shareholders’ meetings could proceed peacefully. They were also on hand when Mr Levinzon, following his appointment, tried to get into the Univermag offices at the Ukraina shopping centre. A new team of security guards, appointed to the centre at about that time, denied him entry.

The Quinn Group bought the shopping centre and the Leonardo Business Centre in Kiev in 2006, with the properties almost immediately used to secure loans from Anglo. Ms Yanez Puga ran the shopping centre and the business centre for the group. She is no longer in control of the business centre.

It is 15 per cent owned by the Quinn Group, 45 per cent owned by Quinn Life Direct and 40 per cent owned by a trust which operates for the benefit of Quinn Group employees, friends of the Quinn family, and members of the extended family.