The English high court has this week issued a worldwidefreezing order against the assets of Russian fresh fruitmultinational, St Petersburg-based JFC Group Co. Ltd, according to a press release by reefer shipowner Star Reefers.
In August this year, the high court in London awarded Star Reefers US$16.5m (€12.6m), plus legal costs and interest,against JFC, following the unlawfulearly redelivery of three ships and wrongful termination of charters by JFC's chartering arm Kalistad Ltd ofCyprus.
JFC have not appealed the judgment and it is nowfinal, with JFC failing to pay the judgement sum.
On 6 September 2011, the judgment debt against JFC wasregistered with the UK Government's Registry Trust, whichis publically searchable by banks, rating agencies, lendersand creditors.
As a result of JFC's failure to pay the judgment debt andbreach of other court orders, on 10 November 2011 the high court ordered JFC to disclose details of all of itsworldwide assets with a value exceeding US$25,000 (€19,000) and anytransactions between JFC and its associated companies.
Because of JFC's 'continuing failure to comply with courtorders' and due to evidence that assets may have betransferred between offshore companies to frustratecreditors, on 16 December His Honour Judge Mackie QCissued a worldwide freezing order in the sum of US$21magainst JFC's assets.
This order is to be served onJFC's Boards of management and directors and also its ownerVladimir Kekhman, with failure to comply with the Orderpunishable by contempt of court sanctions, including up totwo years' imprisonment and/ or unlimited fines.
'It is disappointing that we have had to take such steps toenforce our rights but JFC has gone to remarkable lengthsto avoid their contractual obligations,' said Star Reefers chief executive Simon Stevens. 'Even moredisappointing is the way JFC's owner, Mr Kekhman, seemsto be endorsing JFC's irresponsible behaviour. It isimportant that they understand that they are not above thelaw.'
The court order lists all of JFC's known associatedcompanies in Cyprus, Luxembourg, Ecuador, Costa Rica andBritish Virgin Islands, including its direct parent companyHuntleigh Investments Ltd and ultimate parent company JFCGroup Holding (BVI) Ltd.
JFC's banks including Royal Bank of Scotland, Citibank,Nordea, VTB (Deutschland), Gazprombank, Raiffeisen,Sberbank, UniCredit, Amsterdam Trade Bank, Banque SocieteGenerale, Commerzbank, and Bank of Moscow have beennotified of the court order.
Bank Saint Petersburg, which is partially owned by thestate funded European Bank for Reconstruction andDevelopment, owns and controls 20 per cent of JFC.
Star has also commenced enforcement proceedings in Cyprus,Luxembourg and the US against JFC's associatedcompanies.
