Adjudication record

1. Legal proceedings concerning collection of money owed from people related to N. Maximov and discovery of uncollectable debts that had previously been concealed by N. Maximov (82 legal proceedings).

These lawsuits have been given notice of a claim for collecting debt to the Maxi-Group enterprises from the companies related to N. Maximov. In the extraordinary majority of cases the direct collection of money from debtor enterprises turned out to be impossible: the organisations related to N. Maximov have filed for bankruptcy. Further lawsuits concerning about 30 Maxi-Group enterprises have been launched, including demands on creditors. The total sum of claims amounts to RUR11.3 billion. Therefore, the actual uncollectable debts that were included by N. Maximov when valuing the Maxi-Group OJSC shares sold to NLMK have been proven in the course of the lawsuits.

 

Total lawsuits                82
Won                              68
Lost                                9
Discontinued                   4
Continuing                       1

 

2. The legal controversy concerning N. Maximov and related people, regarding the acknowledgement of the invalidity of the transactions, financial operations and corporate decisions (16 legal proceedings)

The whole totality of simulated transactions concluded by the former management of Maxi-Group OJSC in 2006-2008 has been revealed and continues to be brought up during the course of financial and legal investigations conducted by NLМК OJSC. The purpose of a majority of these transactions was the unlawful withdrawal of financial assets from Maxi-Group companies. Seven law suits have been satisfied in the course of legal proceedings and seven more are pending.

 

Total lawsuits                16
Won                               8
Lost                                0
Withdrawn suit                 1
Continuing                       7

 

3. The legal controversy concerning Maxi-Group companies, N. Maximov and the former Maxi-Group management with the recovery of civil damages (7 legal proceedings).

These hearings are aimed at the recovery of a sum of damages lost between 2005-2008 due to the unjustified actions of the Maxi-Group OJSC management under the leadership of N. Maximov. The general damage caused by the unlawful acts of the Maximov team considered within the framework of these proceedings amounts to more than RUR5 billion. The legal rules governing this category of claims are some of the most complex. Even if one succeeds to prove in the course of proceedings the known unprofitability of the actions of management for their enterprise, it is extremely difficult to attain recovery of the inflicted damage directly from the people who committed the unlawful actions. The judicial system has not yet worked out such practices under which dishonest managers would take full financial responsibility for their actions. The settlement of two claims against the managers employed by N. V. Maximov has been refused. The consideration of five cases concerning N. Maximov, А. Loginovskikh, S. Mironov, S. Zakharov, P. Kudrupov, А. Kutakov, V. Butenko, М. Gulyaev, continues.

 

Total lawsuits                 7
Won                               0
Lost                                2
Continuing                       5

 

4. The legal controversy concerning N. Maximov and the people related to him in this dispute with the Group (37 legal proceedings).

N. Maximov and the people related to him have attempted within the framework of these legal proceedings to demand and obtain financial assets from the Group enterprises, to challenge the corporate decisions of the Maxi-Group enterprises, demand and obtain documentation and declare invalid certain transactions between Maxi-Group enterprises and NLМК OJSC. N. Maximov has lost legal proceedings on all the key issues pertaining to corporate decisions and transactions concluded by NLМК OJSC and the Group companies. He failed, among others, to prove the relevancy of his demands to Maxi-Group OJSC about a return of RUR1.4 billion. He has also lost six legal proceedings in which he attempted to challenge the lawfulness of the corporate decisions and open tender, in the course of which NLМК OJSC has acquired a block of shares of the Maxi-Group enterprises. The legal proceedings have confirmed the lawfulness of actions of Maxi-Group OJSC and NLМК OJSC.

 

Total lawsuits                37
Won                              15
Lost                               10
Discontinued                    5
Continuing                       7

 

TOTAL LAWSUITTS              142
WON                                     91
LOST                                      21
DISCONTINUED                      10
CONTINUING                          20