Mittal sues Ukraine for Kryvorizhstal overvaluation

Friday, 20 October 2006 10:12:23 (GMT+3)   |  
       

Mittal Steel has filed a lawsuit against Ukraine's State Property Fund (SPFU), claiming that Kryvorizhstal (now Mittal Steel Kriviy Rih) which it acquired for $ 4.8 million in October 2005, had been overvalued. ’The SPFU concealed some $6.6 million of debts owed by Kryvorizhstal at the time of the Mittal purchase and so acted in bad faith', the suit alleges. The legal framework of the record turnover of the plant to Mittal had also suffered from numerous procedural shortcomings. On the other hand, the SPFU has issued a statement saying that the transfer of Kryvorizhstal to Mittal Steel had been proper in all details and that it expected the new owners of the mill to fulfill their obligations.

Tags: Ukraine CIS 

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