Yukos loses Chapter 11 bid

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Friday, February 25, 2005 The Russian oil giant Yukos (Юкос) has lost its bid for Chapter 11 protection by a Texan court. Yukos sought Chapter 11 protection, to prevent the forced sale of the subsidiary Yuganskneftegaz by the Russian authorities.

Judge Letitia Clark said that the oil company didn't have a strong enough presence in America to warrant Chapter 11.

The sale was made to pay Yukos' US$27.5 billion tax bill, Yuganskneftegaz was originally sold for US$9.4 billion to a little known company Baikalfinansgroup (Байкалфинансгруп) which was later bought by the Russian state-owned oil company Rosneft (Роснефть).

Yukos was started by the Russian billionaire Mikhail Khodorkovsky, who is in prison for fraud, embezzlement and tax evasion charges that he denies, saying his arrest is politically motivated by the Russian president Vladimir Putin.

Sources