MTS Ukraine’s lawsuit against the National Bank of Ukraine can be used as an instrument of pressure upon Platinum Bank, – Nickolas Likhachov for Forbes

The court postponed the proceedings in the lawsuit filed by MTS Ukraine against the National Bank of Ukraine. The mobile provider demanded to recognize Platinum Bank as a troubled one. UAH 250 million stranded on the Company’s account with the bank.

Nickolas Likhachov, a Counsel at Spenser and Kauffmann, Attorneys at Law,  about whether the courts could help to recover MTS’s money in his interview for Forbes.

‘A bank can be recognized troubled if it fails to meet the requirements of the applicable banking laws, more specifically, is unable to deliver a bank transfer order of a customer within five banking days. This being the case, an administrator of the bank should be appointed first and certain transactions should be restricted. Then, if a bank is recognized insolvent, it should be taken into provisional administration to act as the bank’s management board’, – N Likhachov said.

At first thought the mobile provider will make no profit if Platinum Bank is recognized troubled. ‘If an attempt to sell a bank to a foreign investor fails or in case its solvency has not been recovered during the provisional administration, then, in case of dissolution of the bank a corporate depositor is expected to recover their money on a fourth-priority basis only, – Mr. Likhachov explained. – From this perspective adjudicating the bank troubled or insolvent will make no profit’.

‘However, I presume that this claim can be used as an instrument of pressure. If the bank is recognized insolvent, MTS can approach the National Bank of Ukraine with a proposal to invest money in the bank, increase the capital of Platinum Bank and, in fact, become a shareholder thereof. It is a nice asset takeover technique’, – he supposed.