Deripaska's CEAC sues Montenegro over aluminum plant bankruptcy

Вторник, 3 декабря 2013 21:39 MSK

* Russian billionaire Deripaska's company sues for 100 mln euros

* Montenegro government denies any wrongdoing

PODGORICA Dec 3 (Reuters) - Russian billionaire Oleg Deripaska's Central European Aluminum Company (CEAC) is suing Montenegro for 100 million euros ($140 million) over the failure of its aluminum plant there.

A statement issued in Cyprus, where the Russian company has its headquarters, CEAC said the case will heard in Vienna.

The statement said Montenegro violated a 2010 settlement agreement, leading to the plant going bankrupt.

In a separate statement, Montenegro's government denied any wrongdoing.

Deripaska's company in 2005 bought a 58.7 percent stake in Kombinat Aluminijuma Podgorica (KAP), which in its heyday in the late 1970s had employed 5,000 people.

In a debt for equity deal, the Balkan country's government took back half of that stake in 2009 and the arrangement was sealed in 2010.

Deripaska is also co-owner and chief executive of Rusal , the world's biggest aluminium producer, which is feeling the effects of a weak aluminium price and the cost of maintaining net debt of around $10 billion.   Продолжение...