KyivPost

More litigation in fight over Kyiv's Ukraina shopping mall (updated-2)

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Nov. 28, 2011, 7:04 p.m. | Business — by Mark Rachkevych

A foreign majority shareholder of the $50 million, 45,000 square-meter Ukraina shopping center on Kyiv’s Victory Square says it cannot take control of the place because of former managers and Ukraine’s courts.
© UNIAN

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.

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More litigation has been thrown into the melee for control over Kyiv’s lucrative $50 million Ukraina department store.
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Anonymous Nov. 29, 2011, 12:24 a.m.    

Invest in Ukraine: HAHAHA

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Anonymous Nov. 29, 2011, 5:09 p.m.    

This sort of dispute goes on in the western world also. minorioty Shareholders have rights just as much as the majority shareholders. Just because the bank want to foreclose on the previous majority shareholder does not entitle them to dictate the terms of any sale in which minority shareholders could lose out. they can not force then to sell their asset,. Is the banks does in fact now hold title to the shares previously held, this would be subject to Ukrainian law and not Irish law of bankruptcy in the absence of the bank being ably to buy out the minority shareholders interests it is then up to the bank to sell its shares independently from the other minority shareholders. The minority shareholders have the right to retain their holdings. They may seek to purchase the available shares or subject to the directions a]of the new shareholders should they be sold. either way minority shareholders have right and can not and should not be forced intro accepting a less than favorable position. Much depends on the nature of the company structure and terms of the existing shareholdings.

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Anonymous Nov. 30, 2011, 8:06 p.m.    

And, of course, yet another know-nothing person trying to misinform everyone about how things are in the &quot;Western world.&quot;

Per the prior story by Mr. Rachkevych, there was an $80 million mortgage agreement. Typically, in the &quot;Western world,&quot; the real estate itself is given as security for the mortgage loan - plus other collateral, which in this case, appears to be shares of the company.

A mortgage foreclosure on real estate would typically have nothing to do with a challenge to the validity of a shareholder's meeting.

The secured creditor would have the right to take over the real property (the land and buildings), pursuant to mortgage foreclosure.

Any shareholder disputes are entirely separate matters that are a matter of internal corporate law, not real estate foreclosure law.

Except, of course, in bizarro bass ackwards Ukraine.

Only in Ukraine do they make simple things complicated, and twisted, and perverted.

As the previous comment said:

invest in Ukraine - HA HA HA HA HA HA HA HA HA

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