On October 10, 2018, the civil division of the Supreme Court of the Republic of Kazakhstan annulled the decisions of the lower instance courts declaring Kazakhstan Kagazy JSC bankrupt and cancelling the company’s rehabilitation procedure. The rehabilitation procedure has therefore been resumed, as the company says in the press release received by Lesprom Network.
The management of Kazakhstan Kagazy Group is satisfied with the Supreme Court’s decision, which has impartially confirmed Kazakhstan Kagazy JSC’s solvency and prospects for repaying creditors. The appeal was supported by all of Kazakhstan Kagazy JSC’s major creditors.
KK Group’s management considers that the Supreme Court victory, together with the enforcement of the $315 million judgment given by the London High Court, will allow Kazakhstan Kagazy JSC to fulfil its obligations to creditors.
In February 2018 members of the KK Group were awarded damages of over $315 million by the London High Court. The court accepted that KK Group had been substantially defrauded by its “thoroughly dishonest” former director and shareholder Maksat Arip, together with certain other former directors. The stolen funds had been raised from Kazakh lenders, including ENPF, as well as investors in the Group’s London Stock Exchange IPO.
Kazakhstan Kagazy PLC is the largest paper, packaging and recycling group in Kazakhstan and Central Asia.