Court halts liquidation of aviation company linked to controversial Russian businessman

Irish company is beneficially owned by Rashid Mursekayev, under investigation over collapse of Vim Avia Airlines

The High Court has granted a temporary injunction preventing an Irish registered aviation company linked to a controversial Russian businessman from going into voluntary liquidation
The High Court has granted a temporary injunction preventing an Irish registered aviation company linked to a controversial Russian businessman from going into voluntary liquidation

The High Court has granted a temporary injunction preventing an Irish registered aviation company linked to a controversial Russian businessman from going into voluntary liquidation.

Mr Justice Michael Quinn made an interim injunction preventing the members of City Leasing DAC, which has registered address in Limerick from holding a meeting of its members, who were due to consider a resolution to wind up the company.

The company is beneficially owned by Rashid Mursekayev, who has extensive interests in the aviation industry. He is under investigation in Russia for alleged fraud arising out of the financial difficulties and the collapse last year of Vim Avia Airlines, which he co-owned.

The collapse of Vim Airlines drew the ire of Russian president Vladimir Putin, who publicly criticised his own government's then transport minister and deputy prime minister over their handling of the matter.

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Injunction

Media reports in 2017 said Mr Mursekayev’s had fled Russia. However, he is understood to be residing in the UK.

The High Court injunction was sought by US-registered firm Volgadnepr-Unique Air Cargo, which argued the move was designed to undermine orders it previously obtained in its action against the City Leasing and other related parties.

The application for the injunction was not opposed in court, and Mr Justice Quinn, who said he wanted to preserve the status quo, adjourned the matter to a date in October.

Seeking the orders Andrew Fitzpatrick SC with Niall Buckley, for Volgadnepr told Mr Justice Quinn that City Leasing had assets worth $8.8 million in 2017.

Counsel said in 2016 his client obtained a €4 million judgment in the German Courts against a German registered firm called ACG Air Cargo which became insolvent in 2013.

The loan, which was not repaid, was guaranteed by Mr Mursekayev who disputes the claim, counsel said.