The Arbitration Court of Perm Krai has granted the request of the Prosecutor General's Office of Russia to initiate a series of additional provisional measures within the framework of the case contesting the legality of the privatization of JSC Metafrax Chemicals (part of Metafrax Group). Metafrax Group is one of the largest producers of methanol and formalin in Russia, and is also the country's largest producer of resins for plywood and wood panels.
The privatization plan of the enterprise in 1992 was approved by the Perm Regional Property Management Committee "exceeding its authority," as stated by the Prosecutor General's Office. The lawsuit alleges that as a result of subsequent transactions, over 96% of the shares are controlled by the American Sorcy Investments Trust (USA), which owns Metaholding.
As reported by "Interfax," the court has placed a freeze on all movable and immovable property of the company, excluding monetary funds. Additionally, the court has prohibited the management bodies of the enterprise from making decisions on profit and loss distribution. Decisions regarding the payment of remuneration to board members, as well as other actions and transactions aimed at withdrawing funds and property from the company's ownership, are also prohibited.
The court has granted the prosecutor's request to impose a ban on dividend payments by the company, as well as any actions that worsen the situation of employees or lead to production stoppage.
The Federal Tax Service has been prohibited from making changes to the Unified State Register of Legal Entities (EGRUL) with respect to the reorganization, liquidation, or changes in the management structure of "Metafrax Chemicals."
The Prosecutor General's Office filed a lawsuit in the Arbitration Court of Perm Krai to challenge the legality of the results of the privatization of JSC Metafrax Chemicals in August. The prosecutor's demands are motivated by the assertion that "supervisory oversight revealed instances of violating the economic sovereignty of the Russian Federation, manifested in the unauthorized disposal and removal from ownership, beyond its will, of JSC Metafrax Chemicals. According to the plaintiff, the enterprise holds strategic importance for the defense and security of the country.
In a statement, the Metafrax Chemicals indicated that it considers the privatization to be legal and possess all supporting documents. The company will continue to fulfill its obligations to partners, creditors, and employees.
The first court session is scheduled for August 25, 2023.
In 2022, Metafrax Chemicals reduced its revenue according to Russian Accounting Standards (RAS) by 15% to 27 billion rubles, and its net profit by 22.6% to 10.6 billion rubles. According to SPARK, the shareholders of Metafrax Chemicals are Metaholding with a stake of 95.88%, the CEO of the enterprise, Vladimir Daut (0.5%), Metafrax Trading (0.27%), and Victor Mayer (0.01%). In 2022, the revenue of Metafrax Group amounted to 78.2 billion rubles (a decrease of 2% from 2021), and the net profit was 12.7 billion rubles (a decrease of 20% from 2021). In June, the company launched a complex for the production of urea, ammonia, and melamine with a total capacity of 1 million tons.
