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DGAP-UK-Regulatory: Kazakhstan Kagazy PLC: London High Court Freezes Assets of The Company's Former Shareholders and Directors
Kazakhstan Kagazy PLC / Miscellaneous
Dissemination of a UK Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.
London, August 6 2013
KAZAKHSTAN KAGAZY OBTAINS WORLDWIDE FREEZING ORDER TO RECOVER MISAPPROPRIATED FUNDS FROM FORMER DIRECTORS
Kazakhstan Kagazy Plc has obtained a London High Court order to freeze the assets of two of the company's former shareholders and directors, Baglan Zhunus and Maksat Arip to recover misappropriated funds.
Forensic analysis by the Board and their appointed advisors has discovered that a sum of approximately $150 million was extracted from the company and channelled into separate businesses outside of the Kazakhstan Kagazy Group.
The Board felt this was a vital step in committing to the highest standards in propriety and corporate governance, and was an integral part in the on-going process of rebuilding the business, which has been led by new CEO, Tomas Mateos Werner.
Tomas Mateos Werner, together with the Board has instigated a systematic and long-term strategy to strengthen the organisation from both an operational and financial standpoint, including reaching agreements to restructure its private creditor loan arrangements, and its bond portfolio.
Significantly, the business has - under new stewardship - begun to be cash-generative. Furthermore, the company today employs over 1200 in Kazakhstan.
Tomas Mateos Werner, commented:
'The freezing order signals the importance of defending the reputation of Kazakhstan, its businesses and the efforts of their hard working employees. This is a vital step in the long-term transformation programme to establish Kazakhstan Kagazy Plc as a world-class business in the region.'
Being a listed company of the Main Market of the London Stock Exchange, Kazakhstan Kagazy Plc will be notifying appropriate regulators - including the Serious Fraud Office (SFO), the London Stock Exchange and the City of London Police of its intentions.
Kazakhstan Kagazy Plc's legal team is led by Stephen Nathan QC of Blackstone Chambers and Jonathan Miller of 1 Essex Court, who were instructed by Zaiwalla & Co solicitors.
Ends
Note to Editors
Kazakhstan Kagazy Plc is one of the leading industrial groups in Kazakhstan traded on the London Stock Exchange. Founded in 2001, Kazakhstan Kagazy Plc is the largest producer of paper and packaging out of recycled waste paper, as well as the leading logistics operator and industrial developer in Kazakhstan and Central Asia.
Contact:
Peter Roberts, 0207 861 2513 or
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Stephen Benzikie 0207 861 3879 or
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| Language: | Â English |
| Company: | Â Kazakhstan Kagazy PLC 33-37 Athol Street IM1 1LB Douglas Isle of Man |
| Phone: | +7-727-244-87-87 |
| Fax: | +7-727-244-87-82 |
| E-mail: | This email address is being protected from spambots. You need JavaScript enabled to view it. |
| Internet: | www.kazakhstankagazy.com |
| ISIN: | US48667M2035 |
| Listed: | London |
| Category Code: | MSC |
| LSE Ticker: | KAG |
| Sequence Number: | 1565 |
| Time of Receipt: | Aug 06, 2013 12:04:06 |
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