Sergey Bakeshin has provided his comments to Pravo.ru on the dispute involving Trust bank

Website Pravo.ru has prepared an overview of the cases being considered by the Supreme Court this week.  Among the cases is an appeal involving the Trust bank and the payment of the holders of credit notes.

Credit notes (certificates issued in subordinated debts) are securities made by a foreign company that issued subordinated loans to the bank. A feature of subordinated loans is that when there is a threat of the bank’s insolvency, the loan is written off and the holders of credit notes lose out. This writing off of debt enables the bank to better fulfil its obligations to deposit holders and other customers.

“Back in 2016 the Supreme Court explained that matters involving potentially risky investments in overseas securities are not covered by the consumer protection law and that the disputes of the holders of credit notes with the Trust bank should be heard in the court and in the jurisdiction that the parties had agreed.  The current case was considered by the wrong court.  I hope that the Supreme Court will restore the lawfulness in this matter and overturn the case decisions before transferring the case to the relevant court”, stated Sergey Bakeshin, Senior Associate and Head of the Dispute Resolution Practice at Maxima Legal.

For the full version of the article, please see the following website https://pravo.ru/review/view/146793/?cl=N