newstodate.aero
Oct 03, 2014 (newstodate): The legal battle between Swissport and Ukraine International Airlines over their JV, Swissport Ukraine is still raging, with surprising twists and turns.
Swissport Ukraine launched business from June 1, 2006, with Ukraine International Airlines holding 29.4 percent of the shares.
A rift however developed after a Board Meeting on March 6, 2012, when Swissport raised the issue off the formal agenda of a future recapitalization of the JV.
While this was allegedly raised as a topic for discussion after the formal agenda only, UIA's owner since 2011, Igor Kolomoisky claimed that the carrier's minority rights had been violated while Swissport Ukraine claimed it had been targeted by what it terms "a hostile corporate raider attack" by UAI.
The issue was brought to the Ukrainean Economic Court and has since been handled at the second and third, and last, appeal courts.
On March 27, 2013 Swissport lost its majority share of 70.6 percent and the control over Swissport Ukraine, now renamed Interavia, to UIA.
But in October 2013, the Highest Economic Court ruled in favor of Swissport, cancelled all prior decisions and referred the case back to the first instance court that in May 2014 also ruled in favor of Swissport that should have its majority stake restored and the Interavia-name changed back to Swissport Ukraine.
UIA, however, appealed against this ruling to the court that has now again-again ruled against Swissport!
-The fact that the Court of Appeal in the main case now ruled against Swissport is a surprise. The verdict is not in line with Ukrainian law and contradicting Ukraine's attempt to get closer to European legal standards and to improve its legal and political environment to protect foreign investments efficiently, says Mark Skinner, Swissport Senior VP Ground Handling Europe.
-We will meet this challenge again with the support of the Embassies of Switzerland and France as well as other parties, and we will certainly bring this issue also to the attention of the pertinent EU institutions for review in light of Ukraine's alleged efforts to bring its legislation closer in line with EU standards.
Swissport expects the coming court hearings to start by November or December 2014.
Swissport Ukraine launched business from June 1, 2006, with Ukraine International Airlines holding 29.4 percent of the shares.
A rift however developed after a Board Meeting on March 6, 2012, when Swissport raised the issue off the formal agenda of a future recapitalization of the JV.
While this was allegedly raised as a topic for discussion after the formal agenda only, UIA's owner since 2011, Igor Kolomoisky claimed that the carrier's minority rights had been violated while Swissport Ukraine claimed it had been targeted by what it terms "a hostile corporate raider attack" by UAI.
The issue was brought to the Ukrainean Economic Court and has since been handled at the second and third, and last, appeal courts.
On March 27, 2013 Swissport lost its majority share of 70.6 percent and the control over Swissport Ukraine, now renamed Interavia, to UIA.
But in October 2013, the Highest Economic Court ruled in favor of Swissport, cancelled all prior decisions and referred the case back to the first instance court that in May 2014 also ruled in favor of Swissport that should have its majority stake restored and the Interavia-name changed back to Swissport Ukraine.
UIA, however, appealed against this ruling to the court that has now again-again ruled against Swissport!
-The fact that the Court of Appeal in the main case now ruled against Swissport is a surprise. The verdict is not in line with Ukrainian law and contradicting Ukraine's attempt to get closer to European legal standards and to improve its legal and political environment to protect foreign investments efficiently, says Mark Skinner, Swissport Senior VP Ground Handling Europe.
-We will meet this challenge again with the support of the Embassies of Switzerland and France as well as other parties, and we will certainly bring this issue also to the attention of the pertinent EU institutions for review in light of Ukraine's alleged efforts to bring its legislation closer in line with EU standards.
Swissport expects the coming court hearings to start by November or December 2014.