London court dismisses request for arbitration on VTB's claim against Montenegro’s KAP

By bne IntelliNews June 13, 2016

The London Court of International Arbitration (LCIA) has dismissed arbitration on the claim filed by Russia’s VTB Bank against the bankruptcy of Montenegro’s aluminium smelter KAP, broadcaster RTCG reported on June 13, quoting KAP’s receiver, Veselin Perisic.

Following the latest ruling, Montenegro’s commercial court can complete the bankruptcy proceedings of KAP, Montenegro's largest industrial company.

VTB Bank had filed a claim with LCIA, seeking a court ruling against the bankruptcy declared by the smelter, and to receive more than €30mn unpaid liabilities. Back in 2010, KAP stopped sending aluminium to its sole client Glencore after it established that the sales revenue paid by Glencore into KAP’s account at VTB had been seized by the lender.

In April last year, the High Court of Justice in England also dismissed VTB’s claim and the bank went on to request the arbitration.

“Upon the request of bankrupt KAP’s legal advisor, on May 17 the London court took a decision to end the arbitration on VTB’s claim,” Perisic was quoted as saying in a statement to the media.

In 2014, Montenegrin privately-held firm Uniprom signed a deal to buy KAP for €28mn. However, a Cyprus court has banned the sale of KAP’s assets at the request of the company's former owner - Russia's En+ Group of businessman Oleg Deripaska. The ban concerns any transactions with KAP's assets, bank accounts and aluminium it has produced.

Related Articles

Overlooked carbon costs spell financial trouble for Western Balkan coal power plants

Ten coal-fired power plant projects across the Western Balkans are facing serious financial problems as they have not taken properly into account carbon costs, according to ... more

US Senate ratifies Montenegro’s Nato accession protocol

The US Senate ratified the protocol for Montenegro’s membership in Nato late on March 28, ending months of tension and speculation over Washington’s ... more

US Senate moves closer to unblocking Montenegro’s Nato membership

US senators voted overwhelmingly to end the debate on Montenegro’s Nato membership at a session on March 27, paving the way for a vote on the issue ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss