In August 2013, Kazakhstan Kagazy PLC and certain of its subsidiaries (the “Claimants”) commenced proceedings in the London High Court against the Company’s former shareholder and CEO, Maksat Arip.  It was alleged that Mr Arip had misappropriated funds from the Claimants, in collaboration with former finance director Shynar Dikhanbayeva and other former directors and officers of the Claimants.

On 22 December 2017 the London High Court ruled that the Claimants had succeeded comprehensively on almost every point of substance. On 28 February 2018 the Court ordered Mr Arip to pay $298m damages and an interim costs award of £8m to the Claimants. The Court also issued a further freezing injunction of $315m against Mr Arip’s assets. In breach of the orders against him, Mr Arip has not to date made any payment to the Claimants. The Claimants are therefore pursuing enforcement of the orders.

Mr Arip applied for permission to appeal the judgment. On 31 July 2018 the Court of Appeal refused the main substance of Mr Arip’s appeal, holding that there was no real prospect of the first instance decision to reject Mr Arip’s limitation period defence being overturned. Mr Arip was granted partial leave to appeal in relation to the award of default interest and penalties charged to the Claimants (amounting to $77 million). On 24 August 2018 the Rt. Hon. Lord Justice Simon ordered that any appeal by Mr Arip would be subject to the provision by Mr Arip of £150,000 security for the Claimants’ costs of the appeal by 21 September 2018, and the payment of £2,500,000 of the Claimants’ interim costs award by 5 October 2018.

On 26 September 2018 the Claimants were informed that Mr Arip has not met the deadline to provide security for the Claimants’ costs of appeal. This brings an end to the appeal proceedings. The award to the Claimants of $298m damages and interim costs of £8m will therefore not be subject to any further appeal.