Hillmont Partners and Hogan Lovells continue protecting interests of the US-based investors of the GNT Group. The High Court of Justice upholds worldwide freezing order against GNT Group owners

26/ 02/ 2024

On 8 February 2024, Judge Jacobs of the High Court of Justice of England and Wales issued a decision refusing to lift the worldwide freezing order (WFO) against the assets of Sergiy Groza and Volodymyr Naumenko. A relevant application to lift the WFO was filed by Groza and Naumenko. The WFO was imposed in January 2023 upon the claim of Madison Pacific Trust Limited, a facility agent acting on behalf of the US-based investment fund Argentem Creek Partners (ACP). ACP and another US-headquartered investment fund, Innovatus Structured Trade Finance I S.à r.l, provided GNT Group with loans amounting to USD 95 million in total. The loans have not been repaid despite it having a final maturity date in December 2021. The High Court of Justice, having taken into account the arguments of the claimant, particularly in relation to evidence of Groza and Naumenko illegally removing assets from the GNT Group, acknowledged the real risk of dissipation of assets by Groza and Naumenko. The court noted that the case is “one where the evidence is as strong as any that I have ever seen” and that there was “no doubt that it is just and convenient to grant the injunction”. This judgment of the High Court of Justice of England and Wales is an important step towards ensuring the protection of GNT assets by the US-based creditors. Hillmont Partners acted as Ukrainian counsel supporting Hogan Lovells, acting for Madison Pacific Trust Limited. Managing Partner James Hart, Senior Partner Valentyn Zasukha, Counsel Oleksiy Myagkyi and Senior Associate Bohdan Novyk of Hillmont Partners were engaged in this matter.

The WFO was imposed in January 2023 upon the claim of Madison Pacific Trust Limited, a facility agent acting on behalf of the US-based investment fund Argentem Creek Partners (ACP).

ACP and another US-headquartered investment fund, Innovatus Structured Trade Finance I S.à r.l, provided GNT Group with loans amounting to USD 95 million in total. The loans have not been repaid despite it having a final maturity date in December 2021.

The High Court of Justice, having taken into account the arguments of the claimant, particularly in relation to evidence of Groza and Naumenko illegally removing assets from the GNT Group, acknowledged the real risk of dissipation of assets by Groza and Naumenko.

The court noted that the case is “one where the evidence is as strong as any that I have ever seen” and that there was “no doubt that it is just and convenient to grant the injunction”.

This judgment of the High Court of Justice of England and Wales is an important step towards ensuring the protection of GNT assets by the US-based creditors.

Hillmont Partners acted as Ukrainian counsel supporting Hogan Lovells, acting for Madison Pacific Trust Limited.

Managing Partner James Hart, Senior Partner Valentyn Zasukha, Counsel Oleksiy Myagkyi and Senior Associate Bohdan Novyk of Hillmont Partners were engaged in this matter.