Irish bank foiled in attempt to recoup Ukraina mall for debt

Print version
Jan. 9, 2012, 3:14 p.m. | Business — by Mark Rachkevych

Sean Quinn had once been Ireland's richest man whose net worth Forbes valued at $6 billion.

Mark Rachkevych

Mark has been a reporter for the Kyiv Post since 2006, but joined full-time in 2009. A native Chicagoan where he was the co-founder of the now defunct Glasshouse Magazine, Mark currently is an editor of business news and still contributes stories on an ongoing basis. He is a former U.S. Peace Corps volunteer, a graduate of St. Norbert College in Wisconsin, and fluent in the Ukrainian and Russian languages.

Kyiv’s lucrative Ukraina shopping mall is on the verge of forever falling out of the reach of foreign shareholders following a court ruling on Dec. 23 that could render it bankrupt.
Announcement To Readers

Since 1995, the Kyiv Post has been the world's window on Ukraine. Please support the newspaper’s quality, independent journalism with a digital subscription. Subscribers receive unlimited access to all stories, archives and PDFs from the Kyiv Post's staff writers and news services.
More info.

12 months
1 month
$50.00Pay $20.00Pay
The Kyiv Post is hosting comments to foster lively debate. Criticism is fine, but stick to the issues. Comments that include profanity or personal attacks will be removed from the site. If you think that a posted comment violates these standards, please flag it and alert us. We will take steps to block violators.
Anonymous Jan. 10, 2012, 2:16 a.m.    

Comments have been delete. So much for Kyivpost pretense of being a Free Media.n There was no justification for the removal other than possible Paid editorial policy by KP.

Minor shareholders have rights also. They can not be forced to accept a sale of assets in a fire sale controlled by the Majority Shareholder.

This sought of dispute goes on all the time in the west. If the majority shareholder wants to control the show they need to buy out the minority shareholders interest. Or sell their shares independently from the minor share holders.

{# <-- parent id goes here
Anonymous Jan. 10, 2012, 2:29 a.m.    

Another example of &quot;Free Press' Censorship. All comments have been removed from UK Ambassador. Leigh Tuner's Ope-Ed

{# <-- parent id goes here
Anonymous Jan. 10, 2012, 2:06 p.m.    

FAIL! Looks like the Ukrainian leadership finally learned how to use Google Translate and put some pressure on the Kyiv Post staff to not allow a place for unapproved public discussion.

{# <-- parent id goes here
Anonymous Jan. 12, 2012, 11:33 p.m.    


{# <-- parent id goes here
Anonymous Jan. 10, 2012, 12:55 p.m.    

Why do you think majority shareholders should obey minority shareholders? Do you think every babushka with $1 of shares should have veto power?

If democracy operated this way, there would be no democracy. Why? Because every person could veto any law and any tax which he or she did not like.

I know what your problem is .... GREED!! You want huge profits but you invest almost nothing.

{# <-- parent id goes here
Anonymous Jan. 12, 2012, 10:11 p.m.    

after all this do you think banks will give loans to invest into ukraine ? then you wonder why people are not investing in ukraine

why because you will lose all

{# <-- parent id goes here
Anonymous Jan. 13, 2012, 12:06 p.m.    

I do not really see how this is too mysterious. Kyiv Post - great publication - but Lyndhurst Development Trading is owned by Sean Quinn in the BVI (British Virgin Islands).

Quinn has publicly filed for bankruptcy and now lives in Switzerland. He bought 92% of Univermag Ukrainia with Anglo Irish Debt.

Like Quinn - most (98%) of large real estate assets are held in Ukraine through places like Cyprus and BVI which have signed duel-tax treaties with Ukraine for remittance taxes.

If you look at Cyprus - 90% of the owners of the corporations are well off Russians and Ukrainians.

Anglo Irish Bank is also wiped out - so it is totally normal that the taxpayers from Ireland want some of their money bank - they are paying for this through NAMA.

Whether you like the system or not - this (in my opnion) is not the fault of Ukraine at all - but Sean Quinn - who borrowed too much.

{# <-- parent id goes here
Mark Rachkevych Jan. 13, 2012, 1:13 p.m.    

Actually, it's a little more complicated than that. The BVI company was founded mid-2011 (Ukraina was bought by Quinn in 2006 and was part of a holding company in Sweden). The BVI firm in question, was assigned the alleged debt of Ukraina in Nov. 2011 as a supplementary loan agreement by an Irish company belonging to Quinn, hence the apparent link to Quinn's son-in-law and nephew. There's more to this, but that's the gist of it.

{# <-- parent id goes here


© 1995–2014 Public Media

Web links to Kyiv Post material are allowed provided that they contain a URL hyperlink to the material and a maximum 500-character extract of the story. Otherwise, all materials contained on this site are protected by copyright law and may not be reproduced without the prior written permission of Public Media at
All information of the Interfax-Ukraine news agency placed on this web site is designed for internal use only. Its reproduction or distribution in any form is prohibited without a written permission of Interfax-Ukraine.