Arricano Real Estate PLC is ready to buy Sky Mall from bank "Pivdennyi"
On July 3, 2017, Alla Vanetsiants, the chairman of the board of bank “Pivdennyi”, in the interview with Business magazine informed that the bank plans to sell Sky Mall, reporting the history of the issue as follows: " Over a year we had no complaints to debt management of Sky Mall, until the conflict between the owners of the shopping mall intensified, and there were various attempts to put pressure on the bank, as the holder of the mortgage. But after trying to put the pledge agreement in issue, the bank had no choice but to start the process of enforcement, which has been done. The bank confirmed the legality and validity of its actions, passing numerous inspections of various controlling authorities and auditors. All pledges that pass after the enforcement into the bank's property are further being sold. And Sky Mall will not be an exception. We plan to sell it."
Arricano Real Estate PLC is ready to buy Sky Mall from bank “Pivdennyi”.
Mykhailo Merkulov, CEO of Arricano, clarifies the company's position: "If bank “Pivdennyi” is going to sell Sky Mall, we are ready to buy it, and we will send an official letter to the bank's management about our intention. To take a worthy place in the TOP of Ukrainian banks, any financial institution needs to get rid of super-toxic assets (Sky Mall for the bank is a case in point). Assets with a raider smell affect the reputation of the bank, discourage serious customers and investors, and Sky Mall is the most high-profile scandalous case when a foreign investor failed to protect his property in Ukraine. Therefore, by selling the shopping mall to us, the lawful owner, as proved by the decision of the London International Arbitration Court, bank “Pivdennyi” can not only clear its portfolio of toxic assets, increase its reputation capital, but also affect the growth of investor's confidence in Ukrainian banks, the country in whole and contribute to improving the investment climate in Ukraine."
On May 5, 2016, the London International Arbitration Court made the final decision in the arbitration dispute between Arricano Real Estate PLC and Stockman Interhold S.A. regarding the ownership of shares in Assofit Holdings Limited, a holding company that formerly fully owned the Sky Mall in Kiev, Ukraine. According to this decision, all shares in Assofit Holdings Limited, formerly owned by Stockman Interhold S.A., must be transferred to Arricano Real Estate PLC on or prior to June 5, 2016 for USD 0.
The dispute between Arricano and Stockman arose in connection with execution of the Call Option Agreement, made between Arricano and Stockman on February 25, 2010, which stipulated for Arricano's right to purchase all Assofit shares owned by Stockman.
In 2014, all assets of Assofit, including Sky Mall and corporate rights to the company which previously owned Sky Mall, were "blurred" and traced to presumably affiliated Stockman companies.
In spite of the arbitration decision taken by the London International Arbitration Court on May 5, 2016 in favor of Arricano, Stockman did not effect and did not ensure the transfer of shares under the call option when due.