LONDON, Nov 15 (Reuters) - International bondholders have brought two claims worth combined $375 million plus interest against Ukraine’s now state-controlled PrivatBank in the London Court of International Arbitration, a lawyer for the group told Reuters.
Ukraine’s government took over PrivatBank, the country’s largest lender, late last year after what was described as risky lending practices left the bank with a capital shortfall of around $5.65 billion.
The move was supported by Ukraine’s western backers, including the International Monetary Fund. But some of Privatbank’s creditors have protested the decision, which saw a total of $555 million worth of Eurobonds converted into equity .
Some of those creditors argue the process was rammed through without any attempt to restructure the bonds first. Such a restructuring would normally be tried, they say, and would have inflicted less damage on bond holders.
The claim was filed with the court on November 8 and PrivatBank has 28 days to deliver an initial response, a lawyer from law firm Dechert LLP said. (Reporting by Marc Jones; editing by Karin Strohecker)