By KYIV. Nov 2 (Interfax-Ukraine) – The Central Economic Court of Appeal on Thursday upheld the appeal of state-owned PrivatBank to seeking lift the injunction on the return of 245 filling stations from companies associated with the former owners of the state-owned bank, the financial institution’s press service reported on Thursday.
“All this time, the courts prohibited the state-owned bank from gaining control over its property. Outsiders continued to use the filling station and make a profit. During this time, the bank lost more than UAH 10 billion in lease payments and could not sell the filling stations,” the bank said in a press release, citing its lawyers.
“There are many subtenants, they change almost every year. There are usually more than 50 plaintiffs in such cases, they constantly create reasons why the court hearing could not even take place…” the lawyers added.
According to them, the court decision lifts all prohibitions and restores PrivatBank’s right to use its own property.
The state-owned bank recalled that back in 2016, before nationalization, Privat transferred 248 filling stations to its balance sheet by foreclosure on mortgaged items in compliance with the requirements of the regulator, the National Bank. PrivatBank pledged to improve the quality of its loan portfolio.
“Having placed the filling stations on the balance sheet…, the bank, under the leadership of the previous management, immediately transferred them to financial leasing to companies from the circle of the Privat group, concluding 22 leasing agreements with 15 lessees. And they, in turn, subleased the filling stations to other companies of the same group,” the bank’s press service said.
According to the financial institution’s lawyers, the initial placement on the balance sheet followed by leasing was carried out in violation of the law.
As reported by the state-owned bank, repayment of leasing payments took place according to a typical scheme for Ihor Kolomoisky’s group.
“In the first years, only interest was paid, subsequently the principal amount was added. At the same time, the valuation when transferring the filling stations to the bank’s balance sheet was significantly overestimated. Finally, since 2018, the debtors reduced leasing payments, and subsequently stopped them altogether,” the financial institution said.
In 2019-2020, Privat began the process of terminating these contracts and returning the filling stations under its control due to non-compliance with the conditions by the recipients of the financial leasing. Thus, for almost three years the bank did not have at its disposal the 245 filling stations that had previously been placed on its balance sheet.
