Group “FosAgro” was the holder of the loan notes of “Trust”


In November 2013 the company “Phosint limited (“daughter” FosAgro, the largest producer of complex fertilizers in Russia) acquired “Trust” the credit note.

However, in December 2014, the Central Bank introduced in “Trust” temporary administration, and then referred it to the reorganization of the Bank “FC Opening”. Sanitation has been a trigger for debt relief under the notes: they were produced affiliated with the Trust company, the Bank sold the notes, and the money kept in the form of a subordinated loan. The Bank, accordingly, has written off the loan capital, the owners of the notes have not received anything and now are suing the Bank.

“Point” demanded to pay on the notes of $73 million in February of 2015, but “trust” has refused, having explained it to that have not found in your accounting and information systems, “traces of the contract.” Moreover, he filed a counterclaim for rescission of a contract. The court of the Bank, as follows from the decision of the Ninth arbitration court of appeal (have) refused.

Group “FosAgro” has filed a lawsuit in the international commercial arbitration court (ICAC) at the chamber of Commerce with the requirement for the Trust to repay the notes. It is this court, the parties indicated in the contract as the place of dispute resolution, follows from the decision of the court of appeal.

The press service of “FosAgro” has refused to comment on the dispute with “Trust”, citing the confidentiality of the proceedings in arbitration. “The company will make every effort to return all funds belonging to it”, — noted there.

In 2015, the Bank “trust” has written off subordinated debt, which were credit notes, including the acquired company “Phosint limited, responded to the request, the press service of the Bank “trust”, adding that notes were cancelled. In addition, said the press service, the Bank conducted an internal investigation, following which the information about the fact of conclusion of the contract has not been confirmed.

A source close to “FosAgro”, says that before the reorganization of the Trust ” group out there was serviced. “She had a current account for several years,” he says. In statements of PhosAgro in accordance with IFRS for the year 2014 says that the year end the group placed in “Trust” RUB 7.5 billion (almost a quarter of all funds of the company at the time). “In 2015, the group “FosAgro” has transferred funds from “Trust” to other banks,” — said in statements.

Group “FosAgro” in its accounts for 2015, wrote that at the end of the year, owned debt securities of companies affiliated with the Bank, held the procedure of financial recovery. She has accrued a reserve of 50% of the nominal value of these securities in the amount of RUB 2.8 bn PhosAgro does not mention Bank statements, but a source close to the band says that we are talking about the credit notes of “Trust”.

Credit linked notes trust actively sold its VIP contributors from 2007 to 2014, only their steel holders 2 thousand people. The Bank sold seven editions of 20 billion rubles.

Investors are trying to challenge the Bank’s decision to write-off the notes in the courts, but so far without success: most of the decisions the courts make in favor of the Bank. The decision in favor of the holders of notes for the moment, they were accepted by the courts in the regions, in particular in Karelia and Krasnodar Krai. Most cases considering the Basmanny court of Moscow — at the location of the Bank, which began EN masse to refuse to Noteholders in February of this year.

Partner Tertychny Law Ivan tertychnyy (represents in court the interests of certain holders of notes) said that in the arbitration court at the CCI of the proceedings usually last longer and the outcome of cases in the Basmanny court does not affect the arbitral award.
 

Group “FosAgro” — the largest Russian producer of complex fertilizers and one of the world’s largest producers of phosphate-based fertilizers. It produces Apatite concentrate and mineral fertilisers at plants located in Kirovsk (Murmansk region), Cherepovets (Vologda region), Balakovo (Saratov region) and Volkhov (Leningrad region). The beneficial owners of the group are Mr. Andrey Guriev and members of his family.

The assets of the Company at the end of 2015 amounted to 216.5 billion rubles., revenues — RUB 189.7 billion, the Group received last year profit of 36.4 billion rubles. instead of the net loss of 13.6 bn in 2014.