(Corrects to say ruling means Cukurova should have opportunity
to redeem Turkcell shares, not that it should be "compensated")
LONDON Jan 30 A British court ruled on
Wednesday that Russian telecoms firm Altimo had been entitled to
appropriate shares in Turkcell over a defaulted loan,
but said Cukurova should have an opportunity to redeem the
shares "on appropriate conditions".
The Judicial Committee of the Privy Council also said it had
asked the parties for more information and would make a further
decision at an unspecified date which would deal with the terms
upon which Cukurova could redeem the shares.
Cukurova, a holding company of Turkish tycoon Mehmet Emin
Karamehmet, is registered in the British Virgin Islands which is
why the case is being dealt with by the Privy Council. It is the
final court of appeal for many Commonwealth countries, including
the British Virgin Islands.
In its complex 36-page ruling the court rejected Cukurova's
argument that it had not defaulted on the $1.35 billion loan
from Altimo in the first place. The court said an event of
default had in fact taken place.
It said that Altimo had therefore been entitled to
accelerate the loan and appropriate the Turkcell shares but
"relief against forfeiture should be available to (Cukurova) on
appropriate conditions", meaning that Cukurova should have the
opportunity to redeem the Turkcell shares appropriated by
The court said it had sent the parties a list of points that
needed to be clarified before it could make a final decision on
"the basis and terms of such relief". That means that it needs
more information before it can give its ruling on what terms and
conditions Cukurova would have to meet in order to redeem the
The court did not say when it expected to give its final
decision on the case.
(Reporting by Estelle Shirbon; Editing by Stephen Addison)