US Court delivered a judgment in favor of BTA Bank07.08.2020 19:20:00
On August 05, 2020, the US District Court for the Southern District of New York delivered a judgment in favor of BTA in a dispute against bondholders of a group of Panamanian affiliated companies: Atlantica Holdings Inc, Baltica Investment Holding Inc, Blu Funds Inc.
The dispute between the Sovereign Wealth Fund “Samruk-Kazyna” JSC, BTA Bank JSC and the bondholders began more than eight years ago. In 2012, the lawsuit was first filed by the creditors, the bondholders, against the former majority shareholder of BTA - the Sovereign Wealth Fund “Samruk-Kazyna” JSC. Later, in 2013, similar stated claims were filed against BTA Bank JSC.
The plaintiffs stated that they had purchased BTA’s subordinated bonds based on the Information Memorandum of 2010 provided by BTA and Samruk-Kazyna. However, the document, according to representations of plaintiffs, contained the distorted and incomplete information, based on which the investors received not the expected income, but a loss due to the restructuring of BTA’s debt in 2012.
The Court took into account the data provided by BTA and rejected all the stated claims of the bondholders. The Court found that the statement of Samruk-Kazyna and BTA in 2010 that the restructuring during that period would allow BTA continuing its operations were “standard forward-looking statements” and “did not call creditors for actions”. The Court also ruled that “none of reasonable investors” would find other BTA statements about securities as misleading ones.
The Court considered that the plaintiffs had not provided any evidence that their investment losses were caused by misrepresentation. They were also unable to show a proximate causation between their losses and the alleged omissions in the Investment Memorandum on the deposit of Samruk-Kazyna placed with BTA. At the same time, that information about the deposit was posted on websites of Samruk-Kazyna and BTA Bank.
“We are grateful that the Court delivered a judgment in our favor and recognized that the enormous efforts of BTA, its majority shareholder and many professionals who helped them in BTA restructuring in 2010 and 2012 did not harm BTA bondholders”, said Jason Vin’ya, the partner from the law firm of Katten Muchin Rosenman LLP, representing BTA.
BTA representative, Executive Director - Renat Salykbayev, in his turn, expressed gratitude to the American Court and the USA judicial system for its impartiality and objectivity:
“The BTA team made every possible effort and proved their case”.
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