US court grants Yukos temporary injunction; not valid in Russia

Singapore (Platts)--17Dec2004

A US Bankruptcy Court judge in Houston late Thursday granted Russian Yukos'
request to impose a temporary injunction order blocking the Russian
government's Dec 19 auction of the company's main production subsidiary,
Yuganskneftegaz. The injunction "included everyone but the Russian
federation," Yukos lawyer Mike Lake said in a written message, adding, "We are
pleased by the ruling." More details of the ruling were not immediately
available. Russian state gas giant Gazprom, the leading contender for the
Yukos unit, had pleaded against Yukos' request in the court. Yukos filed for
Chapter 11 bankruptcy protection in Houston on Tuesday in a last-ditch effort
to halt the Russian government's auction of Yuganskneftegaz, aimed at
recouping a part of a disputed $27.5-bil tax bill it claims it is owed by
Yukos. The filing included an emergency motion for a restraining order against
Gazprom, any other would-be buyer as well as any lenders on the deal.

Specifically named as targets of Yukos' injunction were Western investment
banks ABN Amro, BNP Paribas, Caylon (Credit Lyonnais), Deutsche Bank, Dresdner
Kleinwort Wasserstein and JP Morgan. "All these auction finances have US
offices and operations," Yukos' Houston filings noted. The starting price for
the bidding for Yuganskneftegaz has been set at $8.6-bil. Earlier Thursday,
Yukos CFO Bruce Misamore told the court that the company has $5-mil in a trust
fund held by a Texas law firm, and another $2-mil in a subsidiary account for
its operations. That, he said, met judge Letitia Clark's requirement that
Yukos have some US assets in order for her to be able to rule, if she saw fit,
that the court had jurisdiction in the case. Gazprom attorney Matthew Botica
had said there was "no evidence" Yukos had assets in Texas, and questioned if
the court should really entertain the case.

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