On November 25, 2020, the Arbitration Court of the Samara Region made a decision to introduce a supervision procedure for Tomet LLC. The same decision included URALCHEM in the list of the third-priority creditors with a demand to collect 77.3 billion rubles in favor of PJSC Togliattiazot and 10.3 billion rubles in favor of URALCHEM, JSC.
On September 21, 2020, PJSC Togliattiazot filed the initial petition for Tomet LLC bankruptcy with the Arbitration Court of the Samara Region. Later, URALCHEM, JSC joined the case as a claimant of damages appointed by the Komsomolsk District Court in favor of Togliattiazot. On November 25, the Arbitration Court of the Samara Region denied Togliattiazot the Tomet LLC bankruptcy claim, recognizing its claims as unsubstantiated, and itself as an inappropriate claimant.
According to the decision of the court, by March 01, 2021, the trustee in arbitration must conduct an internal audit of Tomet LLC and prepare a report on the financial position of the debtor. The data will be submitted to the court, which will consider it and decide on the commencement of one of the following procedures: financial recovery, external administration, or bankruptcy proceedings.
Tomet LLC is a joint defendant in a criminal case of large-scale fraud and damage infliction to PJSC Togliattiazot and a minority shareholder URALCHEM, JSC. According to the verdict of the Komsomolsk District Court of Togliatti, which came into force on November 26, 2019, the beneficial owners of PJSC Togliattiazot Vladimir and Sergey Makhlai, as well as Andreas Zivy, were found guilty of large-scale fraud (Art. 159.4 of the Criminal Code of the Russian Federation) and are obliged to reimburse damage caused to Togliattiazot in the amount of 77.3 billion rubles and to the minority shareholder URALCHEM, JSC holding 9.97% of ToAZ shares in the amount of 10.3 billion rubles. The court decided to collect the same amounts from Tomet LLC as a joint defendant in a civil claim filed by URALCHEM within the scope of the criminal case. The decision of the Arbitration Court of the Samara Region once again proves the competence of URALCHEM, JSC as a claimant in favor of PJSC Togliattiazot, as indicated in the verdict of the Komsomolsk District Court dated 2019.
Dimitry Tatyanin, Director of Legal Affairs, URALCHEM, JSC said,
“URALCHEM is interested in the stable operation of Tomet LLC. The introduction of a supervision procedure within the framework of the current legislation is a necessary and efficient measure aimed at business recovery of the debtor. The previously arrested settlement accounts of the company will be unblocked, which will allow Tomet to continue full-fledged production and financial activities, fulfill obligations to Russian and foreign partners, pay salaries, and fulfill social obligations. We hope that the trustee in arbitration will take control of the situation at Tomet and will prevent unreasonable spending of funds and withdrawal of the company's property."
The commencement of the supervision procedure, the work and control by the trustee in arbitration and the judiciary will stop the growing accounts payable of Tomet LLC. In addition, stable operation will allow the company to fulfill its obligations to compensate the aggrieved parties – PJSC Togliattiazot and URALCHEM, JSC – for damages to the maximum extent possible. Togliattiazot and URALCHEM are major taxpayers. The receipt of funds in the form of compensation of damages will help implementing investment programs scheduled by the companies, upgrading and purchasing equipment, which will further increase tax payments to regional and federal budgets.