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  Monday, September 16, 2019
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A U.S. federal judge in Houston has thrown out the bankruptcy case filed in December by representatives of the Russian oil company Yukos
She ruled that the Russian government needs to be involved in any resolution of the case. "The vast majority of the business and financial activities of YUKOS continue to occur in Russia. Such activities require the continued participation of the Russian government," said U.S. Bankruptcy Judge Letitia Clark. The case came to Houston on December 14 when attorneys representing Yukos sought protection for company assets under what is known as Chapter 11 proceedings. Judge Clark ordered that all company assets be frozen until she had a chance to review the case, but the Russian government went ahead with the sale of Yukos' largest subsidiary, publishes VOA News. U.S. Bankruptcy Judge Letitia Clark dismissed the Yukos case late Thursday, saying there is no precedent for a foreign corporation so central to another nation's economy to pursue Chapter 11 protection in the United States. Yukos first filed for bankruptcy in a Houston court on Dec. 14. Clark called it the largest U.S. bankruptcy ever filed. Yukos has 10 days to file a federal appeal. One reason Clark gave for dismissing the case is the location of Yukos' assets, which are, quite literally, in the ground under Russian land in the form of oil. Yukos originally filed its U.S. bankruptcy in an attempt to stop Russian tax authorities from auctioning off its Siberian oil-pumping subsidiary Yuganskneftegaz to help pay down a $27.5 billion back tax bill. Clark granted a restraining order that stopped international banks, including Deutsche Bank, from financing a bid from Gazpromneft, a former arm of natural gas monopoly Gazprom. Gazpromneft did not bid, but Yuganskneftegaz was sold anyway. First, it was snapped up by a mystery bidder formed just days before the Moscow auction. After a series of buyouts, state-owned oil outfit Rosneft was left operating Yuganskneftegaz. Rosneft is merging with Gazprom, so it appears the Kremlin-friendly company will get to bring the old Yukos unit into the fold, but it still is unclear who financed the deal. Deutsche Bank filed a motion to dismiss the Yukos case, saying a Houston court should have no jurisdiction. Attorney Hugh Ray could not be reached for comment late Thursday, but Gazpromneft attorney Michael Goldberg said the court saw Yukos was trying to evade taxes in another nation by running to the United States, reports the Houston Chronicle
Print A U.S. federal judge in Houston has thrown out the bankruptcy case filed in December by representatives of the Russian oil company Yukos Bookmark A U.S. federal judge in Houston has thrown out the bankruptcy case filed in December by representatives of the Russian oil company Yukos

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