On 26.03.2009 the Federal Moscow Circuit Arbitration Court repealed the ruling of the Tenth Arbitration Court of Appeal and upheld the ruling of the Arbitration Court of the Moscow Region. The latter dismissed the claim filed by the institutional lenders

The Group of institutional lenders of ZAO KB “Olimpiysky” filed a claim with the Arbitration Court of the Moscow Region against a group of persons, including “Gazprom” to hold them jointly liable for CJSC CB “Olimpiysky”’s debts as per article 14 of the Federal Law on Insolvency (Bankruptcy) of Credit Institutions.

By its ruling of 08.10.2008, the Arbitration Court of the Moscow Region dismissed the claim. While making such a decision, the first instance arbitration court’s reasons were that after the completion of the bankruptcy administration the lenders’ claims which had not been met because of insufficient property of the debtor shall have been deemed satisfied.

The Tenth Arbitration Court of Appeal tried the case related to the petition of appeal filed by the institutional lenders of CJSC CB “Olimpiysky” and overturned the ruling of the Arbitration Court of the Moscow Region. The Court of appeal ruled to hold the shareholders in CJSC CB “Olimpiysky” jointly liable because they had demonstrated an act of omission while the bank was losing solvency, and they had also been responsible for the activities of the bank’s executive officers appointed to take their offices by resolutions made by the said shareholders.

On 26.03.2009, the Federal Moscow Circuit Arbitration Court ruled to set aside the award made by the Tenth Arbitration Court of Appeal and confirmed the legality of the ruling issued by the Arbitration Court of the Moscow Region. The Federal Moscow Circuit Arbitration Court specified that the conclusions, contained in the ruling made by the Court of Appeal, did not correspond to the actual facts of the case and the said conclusions had not been based on the applicable rules of law.

The Federal Moscow District Arbitration Court found the Court of Appeal’s conclusions groundless regarding the avoidance by the shareholders of performing their rights and obligations related to the management of the credit institution. According to the cassation instance court, the conclusion that the shareholders had been guilty of the act of omission required the review of possibility to perform the acts that they should have performed to prevent the bankruptcy of CJSC CB “Olimpiysky”, proofs of willful avoidance of performing these acts by the respondents.

Partners at the Law Firm “YUST” Igor Kondrashov and Alexander Bolomatov represented the interests of OJSC “Gazprom” in the cassation instance court.