Subject matter of ICAC proceedings
The subject matter of the International Commercial Arbitration Court (ICAC) proceedings is the price of the shares, as well as the breach by Mr. Maximov of the representations and warranties made by him regarding the Maxi-Group’s assets, business and financial condition, and the consequences thereof.
The positions of the parties vary in two key aspects:
- the inclusion of uncollectable receivables by Maxi-Group as a factor decreasing the “net indebtedness” of the Maxi-Group and, accordingly, increasing the cost of shares; and
- the consequences of multiple infringements of the representations and warranties made by N. Maximov regarding the Maxi-Group’s state of business at the time of closing the deal.