Judge in Ukraine dismisses action over Quinn mall

A JUDGE in Ukraine yesterday dismissed a challenge to an order concerning a shopping mall in Kiev that is worth tens of millions of euro and was once part of the Quinn Group.

Judge Sergiy Stanik adjourned until December 14th a second challenge in the case, which has seen a Ukrainian law firm that says it is owed $225,977.35 being given attachment orders over most of the shares of the Ukrainian company that owns the mall.

Judge Stanik made the decisions even though the law firm that initiated the case, Jurbusinessconsulting, was not present in court. The law firm did not appear for an earlier hearing of the case either. The law firm says it is owed $225,977.35 by Quinn Holdings Sweden, a Swedish company that is part of the Quinn Group and that owns 92.75 per cent of the Ukrainian company that in turn owns the shopping mall.

The shares have a nominal value that is very close to the amount being claimed by the law firm. The court has been shown agreements between the law firm and Quinn Holdings Sweden, dated October 1st, 2010, which were signed by Seán Quinn on behalf of the Swedish company.

Quinn Holdings Sweden has since been placed under the control of a Swedish share receiver following an application from the Irish Bank Resolution Corporation, formerly Anglo, which loaned money to the Quinn Group for the purchase of properties in Ukraine and elsewhere.

The bank and the share receiver are seeking to assert control over the properties following the non-repayment of the loans but the Quinn family is resisting the bank’s moves in a number of jurisdictions. The Quinn family was not involved in the case before the courts in Kiev yesterday.

Lawyers for Quinn Holdings Sweden asked the court that the case be thrown out because of the non-appearance of Jurbusinessconsulting but the judge did not accept their argument. Nor did he allow IBRC be joined to the case.

The judge adjourned a second matter where the lawyers for the Swedish company are trying to have an order from the Ukrainian Enforcement Agency, attaching the Swedish company’s property in Ukraine, dismissed.

A statement issued on behalf of the Swedish company said its shares in the Ukrainian company had a market value which was hundreds of times higher than the value of the actual case, yet they have now been under arrest for over half a year.