Holders of eurobonds of nationalized PrivatBank (Dnipro) seek to challenge the forced exchange of their securities to the additionally issued shares in the London Court of International Arbitration (LCIA), the Bloomberg has reported, referring to well informed sources.
Dechert law firm acts as advisor to the bondholders.
The holders of the bonds, including First Geneva Capital Partners, Pala Assets and Pioneer Investment Management, hope to receive foreign assets of the bank as a compensation of their investment, Bloomberg said.
Bloomberg has not yet received any respond from the sides to messages seeking comment.
As reported, as part of the nationalization of PrivatBank, its obligations to a Special Purpose Vehicle (SPV, Britain), the issuer of eurobonds, was subject to bail-in procedures and were exchanged for the bank’s additionally issued shares.
Later the Individuals Deposit Guarantee Fund that introduced temporary administration at the bank, sold all the bank’s shares to the state for Hr 1.
At the end of Dec. 2016 the holders of more than 20 percent of eurobonds in nationalized PrivatBank united in an ad hoc committee for the common protection of their rights and interests after the exchange of their securities for the additionally issued shares of the bank. The committee consists of five funds, including British, American and Swiss, holding different issues of securities for a total of more than $120 million.