×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

London Bourse Halts PIK Trading

Signs reading "PIK" from the developer PIK Group. The London Stock Exchange halted trading of PIK's depositary shares. D. Grishkin

The London Stock Exchange has stopped trade in depositary notes of housing developer PIK Group on the orders of the British Financial Services Authority, and trading will not resume until the whereabouts is established of 8.6 percent of the group's shares frozen at the request of Nomos Bank.

The Moscow Arbitration Court froze the 42.4 million shares in the account of the Deutsche Bank Trust Company Americas as a precautionary measure in Nomos Bank's suit against Maritrade Investment, which belongs to Yury Zhukov, one of the founders of PIK.

During the financial crisis, PIK co-founders Zhukov and Kirill Pisarev sold shares in the company to Suleiman Kerimov and used other shares as collateral for a $262 million loan from Vneshekonombank. Nomos Bank bought that debt in 2009 and began negotiations on its restructuring.

Pisarev agreed to the bank's demands, but Zhukov did not. The bank went to court and froze Zhukov's stock. That decision was reversed on appeal in August on the grounds that no agreement on collateral was made. Zhukov withdrew those shares from VEB.

In the next appeal in the case, the court ruled in favor of Nomos, but the shares were no longer in VEB.

Nomos thinks it has found two-thirds of Zhukov's share package after following it through a series of deals into the Deutsche Bank Trust Company Americas account. The Moscow Arbitration Court ruled in its favor on a petition to prohibit operations with the notes in Deutsche Bank Trust Company Americas, which the owners had received in exchange for the shares.

Before the court had had time to rule, however, almost half of those shares were removed from that company, and the remaining 3.9 percent were sold on MICEX.

Maritrade has no PIK shares now, but it can't be proved that they are no longer in the Deutsche Bank Trust Company Americas, Grigory Chernyshev, a lawyer with Yegorov, Puginsky, Afanasyev & Partners, said earlier, speaking on behalf of Maritrade.

A source close to PIK said the British regulator made its decision after consulting with PIK itself. Some of the shares in question could have been sold already, and the regulator wanted to avoid problems with investors. PIK shares continue to be traded on MICEX.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more