19 May 2004 07:45
YUKOS RECEIVES NOTICE OF POTENTIAL EVENT OF DEFAULT, SHARES FALL
SHARPLY
MOSCOW. May 19 (Interfax) - Yukos Oil Company has received a notice related to a $1.6 billion pre-export facility
secured term loan that it was considered by the lender that a Potential Event of Default has occurred, the company said
in a press release on Wednesday.
"The lender under the loan has approved that Yukos and associated companies continue their export trading
activities related to the loan without restriction, but it may exercise its rights with respect to certain bank accounts
over which security has been granted in its favor at its discretion in the future," the press release said.
The Potential Event of Default notice relates primarily to a tax claim for 99,375,538,234 rubles filed against Yukos
on 14 April 2004, and an order granted by the Moscow Arbitration Court dated 15 April 2004 prohibiting Yukos from
disposing of or encumbering its assets, not involved in the core business of the company.
Yukos had received a similar notice earlier from the lenders under its $1 billion syndicated pre-export facility
secured term loan. The $1.6 billion facility has virtually identical terms and conditions as the $1 billion
facility.
The Moscow Arbitration Court has suspended a Tax Ministry claim
against Yukos for taxes and penalties amounting to over 99 billion
Reports that Yukos Oil Company has received a notice related to a $1.6 billion pre-export facility that a Potential
Event of Default has occurred caused the company's share price to fall sharply on Wednesday morning.
Immediately after the publication of this information at 11:10 Moscow time the company's shares started to fall
and lost 6% of their value within five minutes, falling from 306 rubles to 288 rubles per share, and by 11:30 the
decline reached almost 10% - to 275 rubles.
However, an upward correction started soon afterwards. Yukos says Moscow Arbitration Court suspends Tax Ministry
claim
rubles. "Implementation of the Tax Ministry decision from April 14, 2004 was halted as an injunction in an
appeal by Yukos to have it declared illegal," Yukos Press Secretary Alexander Shadrin told Interfax.
As a result "the Tax Ministry does not have the right to demand payment of taxes, penalties and sanctions for
2002 until the a ruling is handed down in the Yukos appeal, the hearing for which is set for May 28," Shadrin
said.
He said that the Arbitration Court, represented by Judge Grechishkina, which will consider the Tax Ministry's
claim against Yukos for 99 billion rubles on Friday, will be obliged to take into consideration the suspension of the
Tax Ministry's claim, as otherwise a ruling in favor of the claim will be knowingly unjust.
Yukos shares jumped over 7% Wednesday afternoon after Moscow Arbitration Court suspended a Tax Ministry claim against
the company for taxes and penalties of almost 100 billion rubles.
Ten minutes after the news, which came out at 4:52 p.m., Moscow time, Yukos soared 7.5% to 314 rubles on the MICEX,
and 6.4% to $10.8 on the RTS. Case story
In October 2003 Yukos received a credit of $1.6 billion from SG Corporate and Investment Banking, secured by export
revenue. Menatep Group provided financial support for this deal.
Yukos Financial Director Bruce Misamore said earlier, after receipt of notification of a Potential Event of Default
on a $1-billion credit, that he did not rule out receipt of the same notification on the $1.6- billion credit.
However, he said that he hopes the company will be able to settle the tax claims out of court.
Misamore said that the company will not give up, as it is believes in the correctness of its tax payments. However,
he also said that the company hopes that an out-of-court settlement can be reached.
In response to a question as to how the company will make the tax payments if its does not succeed in proving that
the tax authorities' claims are groundless, Misamore said that the company does not have sufficient current
liquidity to pay this amount, but that it does not rule put the possibility of receiving funds on the capital markets or
selling company assets. Samaraneftegaz, Yukos suspected of owing 3 bln rubles in taxes
The Russian Interior Ministry has confirmed that a series of searches was conducted in the Yukos oil company's
central office in Moscow.
"The searches in the oil company have taken place as part of an investigation for the failure to pay taxes by
the Samaraneftegaz company together with Yukos. A tentative report suggests that these companies did not pay about 3
billion rubles in taxes to the budget between 1996- 2000," Tatiana Mironenko, press secretary of the Interior
Ministry's Federal Service for Economic and Tax Crimes, told Interfax on Wednesday.
A criminal case on tax evasion charges was opened against Samaraneftegaz's management in March.
"The investigation has established that in order to avoid paying taxes, the management of Samaraneftegaz and
Yukos sold pure oil as well fluid," Mironenko said.
"Well fluid is a fluid pumped from wells. It consists of oil mixed with water, dirt and other components. This
fluid is naturally sold at a lower price than pure oil, thus leading to lower payments of the profit tax," the
press secretary said.
Yukos Press Secretary Alexander Shadrin said that Yukos rejects any possibility of crimes such as tax evasion or any
other legal violation in the actions of the company's subsidiary or its officials.
"We again declare that Samaraneftegaz and Yukos made all necessary tax payments in full when signing oil
purchase and sale agreements, and all purchase and sale agreements were carried out by the sides. It should be noted in
particular that regular tax audits of Samaraneftegaz did not uncover any discrepancy between Samaraneftegaz information
on oil sales in tax reports and reflected in the company's accounts and reports of actual sales of crude,"
Shadrin said.
"In connection with this we also note the fact that in 1999 the Samara regional Prosecutor's Office already
tried to invalidate an oil purchase and sale agreement between Yukos and Samaraneftegaz. The Prosecutor's Office
stated, among other things, that the conditions of the agreement between Yukos and Samaraneftegaz allegedly hindered
'the correct calculation of oil and its subsequent taxation.' However arbitration courts, including the
appeals court, did not agree with the position of the Prosecutor's Office and dismissed the case," Shadrin
said.
A source in the law enforcement authorities told Interfax that the tax claim against Yukos and its subsidiary might
be increased during the investigation. "At the moment the amount of unpaid taxes has been set at over 3 billion
rubles," the source said. "However, there are grounds to assume that the final total of unpaid taxes will
amount to about 10 billion rubles," he said.
"To establish the total amount of loss to the country's budget, an investigation is being carried out to
receive a number of documents characterizing contractual and financial relations between Samaraneftegaz and Yukos,
Yukos-EP and Yukos-Moscow," the official said.
[Interfax] |
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