When American Steven Lynch acquired the Dutch Yukos Finance at the auction of assets of the bankrupt oil company in Moscow, he did so in association with other investors. One of them may soon be the American hedge fund VR Finance, which is a veteran on the Russian market and specializes in problematic assets.
VR Finance chief Richard Deitz explained that “Monte Valle bought Promneftstroi and now it is in negotiations with several companies to obtain the funds needed to fulfill its obligations , and we are one of those firms.” Promneftstroi has two weeks from the time of the auction (August 15) to pay for its purchase.
Yukos Finance is a problematic asset. YUKOS bankruptcy manager Eduard Rebgun was unable to establish control over it and it is run in practice by former YUKOS executives, who challenged all of Rebgun's decisions in Dutch court. Experts say those cases may continue for “years.” Rebgun did not even have a full list of Yukos Finance's assets and, therefore, the company was sold for its book value.
Yukos Finance's largest asset is thought to be the $1.492 it received from the sale of 53.7 percent of the Lithuanian oil refinery Mazeikiu nafta and 49 percent of the Slovakian pipeline company Transpetrol. Former employees say that the company has over $2.7 billion in assets. Promneftstroi bought Yukos Finance for 7.838 billion rubles. There are also creditor demands of $870 million against the company, mainly from affiliates of YUKOS shareholders.
Deitz has been active in Russia for a long time. From 1991 to 1994, he was a managing director of Credit Suisse First Boston concerned with Russia and Eastern Europe. In 1995, he was one of the founders and managing partners in the Renaissance Capital investment bank. He founded VR Capital in 1998. Deitz declined to specify the amount he was willing to invest in Yukos Finance.
VR Finance chief Richard Deitz explained that “Monte Valle bought Promneftstroi and now it is in negotiations with several companies to obtain the funds needed to fulfill its obligations , and we are one of those firms.” Promneftstroi has two weeks from the time of the auction (August 15) to pay for its purchase.
Yukos Finance is a problematic asset. YUKOS bankruptcy manager Eduard Rebgun was unable to establish control over it and it is run in practice by former YUKOS executives, who challenged all of Rebgun's decisions in Dutch court. Experts say those cases may continue for “years.” Rebgun did not even have a full list of Yukos Finance's assets and, therefore, the company was sold for its book value.
Yukos Finance's largest asset is thought to be the $1.492 it received from the sale of 53.7 percent of the Lithuanian oil refinery Mazeikiu nafta and 49 percent of the Slovakian pipeline company Transpetrol. Former employees say that the company has over $2.7 billion in assets. Promneftstroi bought Yukos Finance for 7.838 billion rubles. There are also creditor demands of $870 million against the company, mainly from affiliates of YUKOS shareholders.Deitz has been active in Russia for a long time. From 1991 to 1994, he was a managing director of Credit Suisse First Boston concerned with Russia and Eastern Europe. In 1995, he was one of the founders and managing partners in the Renaissance Capital investment bank. He founded VR Capital in 1998. Deitz declined to specify the amount he was willing to invest in Yukos Finance.
Via: Kommersant
