Other circumstances not considered by ICAC arbitrators

NLМК presented the ICAC with a report by the leading international appraisals firm, American Appraisal, which estimated the gross value of the Maxi-Group business, as of the time of the transaction, equal to RUR6.6 billion, which is 7 times lower than the stated claims by N. Maximov.

The judgment of the ICAC arbitrators also does not take into account that according to the Agreement all money realised from the sale of shares had to be lodged with the share capital of Maxi-Group with the aim of its recapitalisation Maximov’s refusal to participate in financing the Maxi-Group liabilities within 2008-2010 has ultimately resulted in the bankruptcy of Maxi-Group and made the recapitalisation of Maxi-Group contemplated by the Agreement impossible. This situation, whereby N. Maximov was able to receive the purchase price without any subsequent reinvestment into the share capital of Maxi-Group, contradicts the basic principles of the transaction and brings about the unjustified and improper enrichment of one party.