You're reading: Ukraina department store to challenge transfer of creditors’ claims to Elegant Invest

Public joint-stock company Ukraina department store (Kyiv) and Irish Bank Resolution Corporation Limited (IBRC) continue challenging the transfer of creditors' claims to Elegant Invest factoring company LLC (Kyiv) at the economic court of appeals in Kyiv and in the Shevchenkivsky district court in Kyiv, reads a press release of the department store, referring to a representative of IBRC, Arseniy Miliutin.

“Earlier we’ve proved our position in High Court of Justice of Northern Ireland, which declared that the transfer of the creditors’ claim from Demesne company to other organizations was illegal,” Miliutin said.

He said that a representative of Elegant Invest agreed with the Ukraina department store’s argument in court on the stoppage of the creditors’ claim.

“Despite the fact that the condition should have become the implicit ground for stopping the claim, the court decided not to take this into account. The court even did not pay attention to the position of the representative of Elegant Invest. This is rather strange and it gives us all grounds to continue challenging fraudulent deals,” Miliutin said.

The representative of IBRC also said that the court did not take into account the information of secret payments of around $5 million by former head of Ukraina department store, Larysa Yanez-Puha, to Lyndhurst Development Trading S.A.

“This payment reduces the size of Lyndhurst’s claims against the department store,” Miliutin said.

As reported earlier, Sweden’s Quinn Holdings Sweden AB, which holds a 92.75% stake in public joint-stock company Ukraina department store, on February 25, 2013 managed to establish control over the department store located downtown Kyiv, and acting director Rostyslav Livenzon started to fulfill his functions, reads a press release of the department store.

Quinn Holdings Sweden AB and the department store’s managers will focus on the resumption of full access to the company’s accounts, challenging of fraudulent deals and defining the size of funds seized.

A conflict over the ownership of Kyiv’s Ukraina department store between Quinn Holdings Sweden AB (QHS, Stockholm, Sweden) and Lyndhurst Development Trading S.A. (the British Virgin Islands) has lasted since November 2011.

Ukraina department store opened in 1966.