The Northern Commercial Court of Appeal (Kyiv) has completed consideration of a dispute between Kraft Pipe LLC and Creditwest Bank. The seizure of the Turkish investor’s funds and property has been lifted.

Rasim Bekmezci, the Director of Kraft Pipe LLC, addressed the lawyers of L.I.Group Law Firm with a request to protect the business of a Turkish investor in Ukraine. According to the client’s input data three agreements were signed by the parties during the period of 2017-2018 on the opening of a credit line for a total amount of UAH 16 million. The value of the borrower’s collateral exceeded the loan amount several times. In October 2019, the bank appealed to the Commercial Court of Kyiv with a claim requesting debt collection under loan agreements.

“This is not the first time this bank has pressured companies and taken away business through various manipulations,” commented Rasim Bekmezci, director of Kraft Pipe LLC.

Investors of the company from Turkey claim that they are under real pressure and threat of company corporate raid, and the company director mentions threats from the bank’s representatives.

Therefore, due to the legally-acceptable strategy, the client’s line of conduct in court proceedings and documents timely submitted by the defense representatives  L.I.Group, the Northern Commercial Court of Appeal (Kyiv) revoked the decision of the Commercial Court of Kyiv on the seizure of funds and property and satisfied the appeal of investors from Turkey. The seizure of the company’s funds and property was lifted.

“Fortunately, I was once again convinced that Ukraine is a state governed by the rule of law,” the company’s director commented.

The Client’s interests in court proceedings were represented by Tetyana Korenchuk, L.I.Group’s attorney. According to Ms. Korenchuk, the complexity of the case was that along with legal entities, the defendant in this case was an individual. Accordingly, the Commercial Court of the city of Kyiv groundlessly and unreasonably placed a seizure on funds and property not only of legal entities, but also applied the same measures to secure the claim against an individual – the director of the company.

In fact, as a result of seizure imposed on all property and funds belonging to the defendants, not only the economic activities of the defendants – legal entities was locked down, but also the rights of individuals were breached, in particular, those rights granted by the Constitution of Ukraine, such as the right to receive wages, the right to sufficient standard of living for oneself and their families, the right to dispose of one’s property. “The plaintiff has repeatedly tried to unreasonably apply measures to secure the claim, but such claims were overturned by the court of appeals three times. The decision of the court of appeals was upheld three times by the court of Cassation,” sums up the attorney.