The Russian Supreme Court upheld Libyan Foreign Bank in a dispute with OMG

The Russian Supreme Court upheld Libyan Foreign Bank in a dispute with OMG.

The Supreme Court of the Russian Federation ruled in favor of Libyan Foreign Bank (LFB) in a dispute over the inclusion of its claims in the register of creditors of the Russian agro-industrial company United Meat Group (UMG). The Judicial Board for Economic Disputes of the Supreme Court supported the bank's position, recognizing the reality and commercial feasibility of the loan granted to OMG in 2013-2014 and the validity of the bank's financial claims against the company.

The bankruptcy trustee of OMG, which was declared bankrupt in 2021, disputed the reality of the loan, considering it to be fictitious and a tool to withdraw money from Libya through a Eurobond mechanism using a foreign SPV company. However, the Supreme Court disagreed, which could lead to a review of OMG's bankruptcy case and the return of more than 5 billion rubles to LFB.

Earlier, in 2021-2023, lower courts supported the position of OMG and its bankruptcy trustee, but the Supreme Court ruled in favor of Libyan Foreign Bank, recognizing the validity of its claims against the company.

https://www.rbc.ru/economics/26/09/2024/66f2ee4e9a7947b3bc4bde6b?from=newsfeed

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