PrivatBank Bondholders' Court Win Compounds Lenders' Tussle With Former Owners

A London court order for Ukraine’s largest lender PrivatBank to repay two of its defaulted bonds in full plus interest is a boost for their holders, but looks set to add to Kiev’s complex tussle with the bank’s former owner, oligarch Igor Kolomoisky, Reuters reported. The ruling by the London Court of International Arbitration (LCIA) was originally made in June but the exact details have only just emerged after the bonds’ trustee got approval to communicate them to investors. In theory, PrivatBank could pay out as much as $460 million - the two bonds’ ‘principles’ plus as much as 3.5 years of unpaid interest. However, the LCIA ruling said payment should only be made on bonds which are not held by PrivatBank’s former shareholders and their beneficiaries, which includes Kolomoisky and another oligarch Gennadiy Bogolyubov. Read more