Multi-million lawsuits have afflicted one of the largest holdings in Russia. During one week nearly 400-million-dollars lawsuits has been filed in the Russian and Swiss arbitration courts against “Eurorocement group". Given the amount of past litigation claims against the owner of 40% of the country's capacity for production of cement the total sum will reach 600 million. Even a successful corporation can hardly cope with such a burden. As for Evrocement Group, then such loss may result in its crash, and in some major upheaval for the entire construction industry.
Recent actions for 400 million dollars against the structures of Filaret Galchev were filed by the company GLK Investments Limited last week. Although it is not the first trial for the businessman, these claims are standing out. Earlier it was about certain financial schemes of an arguable legality, while in this case it will a fairly clear case of default on the transaction of sale.
Prior to 2007 GLK owned 23.8% stake in Eurocement Group- that «piggy bank" serving the Swiss ambitions of Galchev. In May 2007, GLK disagreed with international aspirations of Galchev and ceded to him its shares. The deal amounted to $ 1 billion - analysts estimated it as one-third of the market value. The final pay was to be held in installments over five years. But Galchev was unable or unwilling to follow such conditions.
Now GLK intends to collect the debt through the courts. The claim to 362.1 million has been filed in the Swiss Court of Arbitration; the fate of another 35 million will be addressed in the Arbitration Court of Moscow. There will be another lawsuit considered also, filed by GLK in October last year. The value of the matter is more than $ 200 million; the review is scheduled for July. According to experts, the chances of the plaintiff are very high in all the proceedings; it will be difficult to challenge obvious facts - the signed agreement and the fact of non-payment. Thus, it is quite possibly that the ambitious plans to conquer Europe of the owner of "Eurocement Group" will collapse like a house of cards, and Russian plants will have to pay for it.