Tuesday, August 01, 2006

Yukos faces bankruptcy decision

Troubled Russian oil firm Yukos could see the axe finally fall on it when a Russian bankruptcy court meets again.
A Moscow court is due to reconvene to consider the fate of what was once Russia's biggest oil producer.
Arbitration Court Judge Pavel Markov is poised to declare Yukos bankrupt after creditors asked him to liquidate the beleaguered firm.
Russian tax authorities and state-owned oil giant Rosneft are among creditors chasing Yukos for $17bn (£9bn).
Race for assets
But one issue would then be to decide which companies will gain control of the company's remaining assets through liquidation.
Analysts think state-controlled oil company Rosneft, which gained Yukos' Yuganskneftegaz unit after a controversial auction in 2004, or national gas monopoly Gazprom, could benefit most from any sale.
Rosneft is already Yukos' second-biggest creditor behind the federal tax service.
Gazprom, meanwhile, has said it is interested in acquiring a number of Yukos' assets, including its Tomskneft production subsidiary.
Tax bill
Yukos has struggled to survive after a series of tax demands totalling $27bn.
It says the demands are linked to a political campaign against its founder, Mikhail Khodorkovsky, who is currently serving a long prison sentence in Siberia.
In 2004, the back tax bill led to Yukos' main Yuganskneftegaz subsidiary being expropriated by the government and sold off at auction - to be ultimately acquired by Rosneft.
The sale led to a legal challenge from Yukos when Rosneft floated on the London Stock Exchange.

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