The liquidators of two Irish-based leasing firms have launched High Court proceedings aimed at preventing the entities’ Russian state-owned parent from “seizing ownership” of dozens of highly valuable aircraft.
Damien Murran and Julian Moroney, of Teneo Restructuring Ireland, were earlier this year appointed by the court as joint liquidators to GTLK Europe DAC and GTLK Europe Captial DAC.
The firms, which are part of the wider GTLK group, were wound up following an application by four creditors who claimed they were owed more than €162.5 million by them.
The firms’ financial difficulties arose from the economic sanctions imposed on Russian entities following last year’s invasion of Ukraine.
China may be better prepared for Trump this time
The best restaurants to visit in Britain and continental Europe right now
Planning regulator Niall Cussen: We can overcome the housing crisis, ‘if we put our minds to it’
Gladiator II review: Don’t blame Paul Mescal but there’s no good reason for this jumbled sequel to exist
On Tuesday, Stephen Byrne said his clients, the liquidators, want to bring proceedings over what they say is an attempt by the companies’ parent to register itself as the legal owners of 37 aircraft that are assets of the firms in liquidation.
Counsel said the aircraft are based in Russia,
The court heard that GTLK’s parent is Joint Stock Company State Transport Leasing Company, which the court heard is wholly owned by the Russian Federation, represented by its ministries of finance and transport.
The parent is claiming it is entitled to be registered as the legal owner under ‘pledge agreements’ governed by Russian law, allegedly entered into between it, GTLK Europe, and nine other GTLK Europe group companies registered in Ireland.
The pledge agreements were allegedly entered into in March 2022, two weeks before the parent became the subject of European Union (EU) sanctions imposed over Russia’s invasion of Ukraine.
The parent has claimed the pledge agreements were made to secure the repayment of loans from the parent to GTLK Europe between 2017 and 2022.
The liquidators say they have been informed by the parent that it will seek to rely on the pledge agreements to “seize the title over the aircraft”, “secure payment under the loan agreements” and “declare itself the owner of the aircraft under an out of court enforcement of the pledges in the Russian Federation”.
Counsel said the liquidators have, in correspondence with the Russian-based parent, “made it clear” they do not accept the parent has acquired the legal title to the aircraft as a result of the enforcement of the pledge agreements or otherwise”.
In their action, the liquidators are seeking various court orders, including one setting aside the pledge agreements, as well as a declaration that the agreements are void and unenforceable as a matter of Irish law.
They also seek a declaration that the liquidators retain title to the aircraft.
The liquidators asked the parent to consent to the order and declarations, but have not received any response.
Will a new direction for RTÉ ensure the broadcaster’s long-term future?
Several subsidiaries of the GTLK group are notice parties to the proceedings, which the liquidators say should be heard and considered by the Irish courts.
While the pledge agreements are governed by Russian law, the liquidators and the notice parties are based in Ireland.
Mr Justice Mark Sanfey, on an ex parte basis (only one side was represented in court), granted the liquidators permission to serve notice of the proceedings on the Russian parent company and the notice parties.
The matter will return before the High Court next week.
GTLK is Russia’s largest transport leasing business, having leased ships and aircraft to customers all over the world.
GTLK’s Europe Group’s international leasing business is headquartered in Dublin.
Last May four creditors successfully obtained orders to wind up the Irish-based companies.
The companies were estimated to be worth €4.11 billion (US$4.5 billion), with their liquidations described as the biggest in the history of the State.
