Bankruptcy Proceedings Against Former Browder's Company Completed in Russia

The Commercial Court of the Republic of Kalmykia has completed bankruptcy proceedings against a firm believed to be formerly controlled by William Browder’s Hermitage Capital Management, according to court records, reported. The court has granted a petition lodged by Kirill Nogotkov, a bankruptcy manager of the former Browder’s company. In November 2019, the Sixteenth Commercial Court of Appeals upheld recovery of 388,400 rubles ($5,200) from HSBC Bank and HSBC Management in favor of Dalnaya Step, denying granting its claim in full. Dalnaya Step therefore lost an appeal filed against a lower court’s ruling of August 16 ordering the two companies to pay Dalnaya Step this sum instead of 125.3 million rubles (nearly $2 million) demanded by the claimant. According to Nogotkov, these costs accumulated during review of his claim on recovery of 1.2 billion rubles ($16 million at the current exchange rate) in debts of the Dalnaya Step from the HSBC Management and HSBC Bank (RR). In June 2017, the plaintiff filed a claim to collect funds totaling to 1.2 billion rubles, $255,500 and £1,800,000 from the defendants, who were formerly in control of the company. In August of that year, the Commercial Court of the Republic of Kalmykia granted the lawsuit. The Sixteenth Commercial Court of Appeals upheld the ruling in October 2017. However, in November, the North Caucasus District Commercial Court reduced the amount to be collected from the defendants in favor of Dalnaya Step by $255,500 and £1,800,000 respectively. Read more.