JSC "Kagazy Investments" is pleased to announce that as a result of the active actions of the shareholder of JSC "Kazakhstan Kagazy", and with the support of its largest creditor JSC "Unified Accumulative Pension Fund" and other major creditors, the group of companies JSC "Kazakhstan Kagazy" continues to work towards repayment of its debts.
JSC "Kagazy Investments" confirms the firm intention of JSC "Kazakhstan Kagazy" to fully repay its creditors' claims. The total payments made to creditors to date amount to 2,054.5 million KZT from the beginning of the rehabilitation process. Furthermore, the company had exceeded its obligations under its Rehabilitation Plan up to November 23, 2017, when the company was declared bankrupt by the Specialized Interdistrict Economic Court of the Almaty region on the application of Forte Bank JSC.
Despite the decision of the court of first instance having been appealed by the majority of the creditors participating in the process, the court of appeal supported the position of one creditor - JSC "Forte Bank". Nevertheless, as a result of numerous further appeals of creditors, on July 16, 2018, the Supreme Court of the Republic of Kazakhstan initiated proceedings to review the decision to declare the company bankrupt. On July 16, 2018, the Supreme Court held that: "The above and other arguments indicated in the applications testify to the existence of grounds for reviewing judicial acts subject to verification at a court session of the cassation instance court". In this connection, it is hoped that justice will triumph, the judgments placing JSC "Kazakhstan Kagazy" into bankruptcy will be canceled, and the company will be given the opportunity to continue repaying its creditors, including JSC "Unified Accumulative Pension Fund".
Confidence in the company’s solvency and stability is not groundless: Kazakhstan Kagazy JSC owns the largest paper and cardboard plant in Almaty region with more than 600 employees, and has investments in CIS countries such as Kyrgyzstan, Uzbekistan and Russia.
In addition, as previously reported, on February 28, 2018, the High Court of Justice of England awarded the former directors of Kazakhstan Kagazy JSC (M. Arip and S. Dihanbayeva) to pay the plaintiffs, including Kazakhstan Kagazy JSC, an amount totalling USD 315 million. The court found that "thoroughly dishonest" former management had fraudulently misappropriated funds raised from the Group's creditors and IPO on the London Stock Exchange.
The company intends to use the funds received by Kazakhstan Kagazy JSC and its subsidiaries from the enforcement of the judgment of the English court to repay its creditors. At present, the group of companies of JSC "Kazakhstan Kagazy" is actively pursuing enforcement of the assets of the former directors.