Yukos Oil Co., Russia's second- largest oil producer, said it sought Chapter 11 bankruptcy protection in the U.S. and requested an emergency court hearing to stop the Russian government's auction of its biggest unit.
Yukos wants the court to prevent the auction of OAO Yuganskneftegaz, which pumps 60 percent of the company's oil and is being sold in four days to help cover a $22 billion tax bill. The sale is the culmination of more than a year of government demands from Yukos that have wiped $30 billion from the company's value and raised concern of property rights in Russia.
The court ruling "is going to be unprecedented because you have the U.S. bankruptcy courts trying to be used to impede the activities of the Russian state," said Christopher Grierson, a partner in insolvency law at Lovells in London. "I cannot think of another case of this magnitude."
Bloomberg article
Yukos wants the court to prevent the auction of OAO Yuganskneftegaz, which pumps 60 percent of the company's oil and is being sold in four days to help cover a $22 billion tax bill. The sale is the culmination of more than a year of government demands from Yukos that have wiped $30 billion from the company's value and raised concern of property rights in Russia.
The court ruling "is going to be unprecedented because you have the U.S. bankruptcy courts trying to be used to impede the activities of the Russian state," said Christopher Grierson, a partner in insolvency law at Lovells in London. "I cannot think of another case of this magnitude."
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