The Highest Economic Court in Kiev has tossed out United International Airlines’ case against Swissport, voiding rulings made by two lower courts and sending the issue back to the Kyiv City Economic Court for further review.
The case revolves around Swissport’s former Ukrainian entity, which is now doing business as Interavia, and UIA’s attempt to take over the firm. Swissport, which held a majority stake in the company, challenged the takeover, but a pro-UIA decision by the court was upheld on appeal. The most recent ruling means that Swissport will most likely regain its shares and majority ownership of the firm.
In 2007, Swissport bought a 51 percent stake in Interavia from UIA and made it its own, with UIA holding a 30 percent stake. Over time, Swissport’s stake grew. In 2011, UIA claimed Swissport violated its minority rights, so was allowed to purchase the company outright.
In a press release praising the ruling, Swissport also noted the government is starting to look into hostile takeovers in the country with the aim of saving foreign investment and keeping business running in the Ukraine.
Swissport officials would like to work with UIA to come to an amicable solution over the dispute.
“We have been very concerned over the last months, but were always convinced that the law and right are on our side. The endorsement of the Highest Economic Court is an important step and encouragement not only for Swissport but for all foreign investors that are, or want to be active in the Ukraine,” Swissport’s Mark Skinner stated. “We are confident that the latest developments in the Ukraine, initiated by the government and the Highest Economic Court of the Ukraine, are a good first step and now advancing into the right direction.”
Ukraine high court rules in favor of Swissport
