16 June 2004 00:00
Future of Yukos continues to worry investors RUSSIA:
ByLine: By ANDREW JACK
Investors continued to express fears yesterday that Yukos could be driven
into bankruptcy amid reports that the Russian government had rejected
attempts by the oil group to settle its long-running dispute over unpaid
taxes.
The company's shares closed down 8 per cent at Dollars 6.20, their
lowest level in 30 months, dragging the country's stock market down to a
low for the year. The RTS market index dropped more than 4 per cent.
"Over the past two years the whole key to Russian growth has been
investment by dedicated global funds. Even by Russian standards, they are
deciding they don't want exposure," said Paul Collison, oil analyst
at Brunswick UBS, a Moscow brokerage.
Yesterday's falls came ahead of the opening today of the criminal trial
against Mikhail Khodorkovsky, Yukos's former chief executive and largest
shareholder, and his business partner Platon Lebedev, on charges of fraud and
tax evasion totalling nearly Dollars 2bn.
Yukos also faces an appeal this Friday against a Dollars 3.4bn additional tax
bill for 2000, which it has warned could trigger insolvency unless the court
lifted an order preventing it from selling assets.
Yukos managers said they had submitted different proposals to the government
on ways to pay the bill, including issuing new shares, raising extra loans or
selling company assets, to top up current cash of just Dollars 800m.
Yukos increased its debts by Dollars 1.25bn during the first quarter of the
year, in a move that may help its majority shareholders strengthen their
negotiating position in the event the company goes bankrupt, an analyst said
yesterday.
Steven Dashevsky from Aton said Yukos had doubled to Dollars 2.5bn its loans
from Yukos Capital of Luxembourg, on top of Dollars 3bn made late last year
to Yukos Mordovia, two connected companies. Added to an extra Dollars 1.6bn
lent to Yukos by Menatep, the debts could significantly add to the
shareholders' influence in bankruptcy proceedings in any vote against
the state or rival oil groups.
Separately, Menatep, through which Mr Khodorkovsky and his partners control
Yukos, is believed to be considering handing over some of its shares to the
government in settlement of the tax claims.
The move would dilute Menatep's 44 per cent stake, which is subject to a
court freezing order, opening the way to the government taking a significant
equity participation itself or selling it to another group. See Comment &
Analysis and Lex
[COMPANIES EUROPE] |
RUSSIA IN FACTS
