The international investment bank JP Morgan has finally withdrawn from the case of appealing the bail-in procedure for Privatbank Eurobonds. This was reported by the press service of the state bank.
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Court decision
On February 1, the Kyiv Economic Court considered and satisfied JP Morgan’s petition to withdraw its claim within the framework of this case. JP Morgan was one of the plaintiffs who, together with Shakoor Capital, demanded that the bail-in procedure for the nationalization of PrivatBank be invalidated.
What is the bail-in procedure
This is the forced conversion of deposits of bank shareholders and persons associated with them into new shares. This procedure is used to improve the health of an insolvent bank.
Background
On March 8, 2023, a similar claim against Privatbank within the framework of this case was withdrawn by the international bank UBS.
“In the case of appealing the bail-in of Eurobonds, its initiator, the little-known British company Shakoor Capital Limited, remained , Pala Assets Holdings Limited, which is led by Russian businessman Evgeniy Iorikh, Ukrainian sole proprietor D.V. Sazonov and the company Concorde (Bermuda) Limited,” the bank said in a statement.
Also, on February 1, the court returned without consideration of the joint statement of claim previously filed within the framework of this case by the companies Concorde (Bermuda) Limited and Avalia Investments Limited.
Privatbank recalled that thanks to the bail-in procedure during nationalization, the bank’s authorized capital was increased by 29.4 billion hryvnia. The Bank of England recognized this procedure in 2021, and the London Arbitration Court confirmed its legality in 2022.
Court hearings in the Shakoor case have been ongoing for more than two years.