Court closes two cases under claims of ex-shareholders of PrivatBank seeking to invalidate bail-in

The Kyiv business court, by a decision made on June 12, 2020, granted the petitions of the state-owned PrivatBank (Kyiv) to close the cases on two lawsuits filed by ex-shareholders of the bank seeking to invalidate bail-in agreements, the bank's press service said on Saturday.

"This is the first real application of banking law 590-IX by Ukrainian courts. Having analyzed the materials of the cases (No. 910/17630/19 in the lawsuit of LLC Revatis… and No. 910/17541/19 in the lawsuit of LLC KS Group), the court concluded that it was necessary to satisfy the petition of PrivatBank and closed the proceedings in both cases," the bank said in the statement.

According to the bank, the court found that the method of protecting their rights chosen by the plaintiffs (invalidation of transactions) does not meet the requirements of Parts 3 and 4 of Article 5 of the Civil Procedure Code of Ukraine, according to which the only way to protect the rights of a plaintiff in these cases can be monetary damage.

The proceedings are to be terminated on the basis of Paragraph 7 of the final and transitional provisions of banking law No. 590-IX.

"Law 590-IX provides for the right of former shareholders of banks to compensation for harm caused, while prohibiting the recognition of agreements concluded in the process of withdrawing banks from the market as invalid," the press service said.

Source: www.en.interfax.com.ua