Interleaseinvest Group AG Hopes to Resume One of the Biggest EBRD-funded Projects in Ukraine
KYIV, Ukraine, May 17, 2017 /PRNewswire/ --
Interleaseinvest Group AG, the 100% beneficiary of Ukraine-based Interleaseinvest LLC, wants to resume cooperation with the European Bank for Reconstruction and Development (EBRD) to increase the role of private sector in Ukraine's railway transportation market, stated company management today.
The project started back in 2011, when EBRD provided a loan of USD 90 million for Interleaseinvest to part-finance the acquisition of approximately 3,000 railcars. The loan aimed to support the railway sector reform in Ukraine via increased private sector participation and more widespread private ownership. The project's total value was USD 300 mln, which made it one of the biggest in Eastern Europe.
However, in 2014 Interleaseinvest became a victim of a corporate raid, thus the company's legitimate management was physically unable to fulfill their obligations before EBRD for more than two years. This forced the Bank to start a legal procedure against Interleaseinvest, claiming company's assets and cash as a collateral for the unpaid loan.
As of February, 2016, Interleaseinvest Group AG restored their legitimate rights, and expressed their full commitment to repay EBRD's loan. The company and EBRD have renewed negotiations over the loan repayment despite the legal procedure launched by EBRD which is still underway.
On 10 October 2016, the City Court of Amsterdam made a decision to deny Interleaseinvest Group AG the return of the corporate rights in the Dutch company Interleaseinvest Ukraine B.V. Ukrainian who are the owner of Interleaseinvest LLC, which had previously been transferred to EBRD as a collateral. Interleaseinvest Group AG filed an appeal, the hearing on which is to be set up in May 2017.
"We understand EBRD's legal position as they are trying to protect their investment. At the same time, we believe that the resumption of this project is in the best interest of both EBRD and Ukraine," Interleaseinvest concludes in the statement.
Interleaseinvest LLC were one of the leading privately owned providers of rail cargo transportation and freight railcar operating lease services to corporate clients in Ukraine. The Company operated approximately 3000 railcars and served clients from key Ukrainian industries.
SOURCE Interleaseinvest Group AG
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