The final decision of the London arbitration court on the ownership of the shopping mall Sky Mall. The unprecedented legal practice in resolving corporate disputes and the implementation of international arbitration decisions in Ukraine
Arricano Company is pleased to announce that on May 5, 2016 the London Court of International Arbitration adopted a final decision in the arbitration between Arricano Real Estate Plc and Stockman Interhold S.A. concerning the ownership of shares of Assofit Holdings Limited, the holding company, which previously wholly owned the shopping center Sky Mall, located in Kiev, Ukraine.
According to this decision, all the shares in Assofit Holdings Limited, previously owned by Stockman Interhold S.A., should be transferred to the ownership of Arricano Real Estate Plc. not later than on the 5th June of this year for $ 0.
For a long time the conflict over this asset has been one of the most high-profile and negative cases in the sphere of development, which also revealed all the imperfections of the legislative and executive systems in Ukraine. Unfortunately, Arricano company became the victim of a number of raiders' attacks in Ukraine: as a result of unlawful judicial decisions and action of some corrupt law enforcement officials Arricano was deprived of its share in Sky Mall shopping centre, the shopping centre itself and the parking lot, as well as corporate rights were illegally transferred to a shell company through the recovery and re-registration of property rights in spite of the existing court restrictions and applicable court decisions.
Since 2006, the company Arricano Real Estate Plc invested more than 420 mln US dollars (of the total investment program in the amount of more than 705 million US dollars) in the construction of modern shopping centres in Ukraine. At the same time the very fact that the company was illegally deprived of one of the most important assets, as well as numerous company’s claims for help in protecting its rights to the asset to law enforcement agencies of Ukraine and representatives of the authorities, able to ensure the proper implementation of the legislation of Ukraine by all parties to the dispute, gave the Arricano company possibility to use the widest set of tools to protect its investor rights and to become a leader and an example of the fight against corruption in the higher echelons of power.
The company believes that the implementation of the decision of the London Court of Arbitration dated May 5, 2016 may become a precedent, demonstrating to other European investors the opportunities of investment and investment protection. Mikhail Merkulov, Arricano Real Estate Plc General Director, commented: "We are pleased with the way the dispute was solved by the London Court of International Arbitration, especially given the fact that the company operated fully in the legal field, in spite of the constant attacks by the Ukrainian partner in the Sky Mall shopping center project. We hope for a quick return of the asset under Arricano’s control and for the comprehensive support of Ukraine. "