LONDON — Billionaire Oleg Deripaska launched a legal challenge on Monday to try to prevent a case over a disputed stake in his indebted United Company RusAl from being heard in Britain.
Michael Cherney, an Israeli-based Russian entrepreneur, is accusing his former partner Deripaska of failing to honor a business deal struck in 2001 in London, which entitles him to a 13.2 percent stake in RusAl.
The world’s largest aluminum producer, RusAl was valued at $36 billion earlier this year and has total debts of $16.8 billion and is engaged in arduous restructuring talks with a 70-strong creditors club.
Cherney’s lawyers seek a trial in Britain, arguing their client’s life and freedom would be at risk in Russia and a trial there might not be fair. An English High Court judge ruled in his favor over the location in July 2008.
Deripaska’s lawyers are seeking to overturn the decision at the Court of Appeal, saying Russia is the whole focus of this case and therefore it should not be heard in Britain.
The initial hearing is scheduled to last for two days. But Deripaska’s lawyers asked for the possibility of an extension on Monday, which was not ruled out by the judges.
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