IBRC "shocked" at Ukraine case loss

Updated: 10 February 2012 16:58

IBRC has lost a case in Ukraine which could jeopardise its ability to seize a multi-million euro shopping centre in Kiev.

IBRC, formerly Anglo Irish Bank, has lost a case in Ukraine which could jeopardise its ability to seize a multi-million euro shopping centre in Kiev which was part of the Quinn Group.

In a statement the bank said it was "shocked" at the decision of the Kiev City Commercial Appeals Court.

A company called Lyndhurst, registered in the British Virgin Islands, has had its claim of being owed $45m by the shopping centre company upheld in the courts in Ukraine. This means Lyndhurst could make the shopping centre bankrupt, force a sale of the property and recoup the proceeds.

The ownership of Lyndhurst is not known. The bank has already secured an order blocking Lyndhurst from taking action to sell the shopping centre and is seeking to uncover the ownership of the company.

The bank said it would consider the judgment in detail in conjunction with its solicitors and its Ukrainian counsel, and would consider its next steps. It said it would continue to seek to protect assets over which it held legal security in Ukraine. The bank has a mortgage on the property and is trying to enforce its security.