Yukos to Pay $1.3Bln by End of July, Bankruptcy Possible

On Thursday, July 22, Russian oil major Yukos called a news conference and released an official statement commenting on the current financial situation at the company.

Yukos CEO Steven Theedy told reporters that the company will pay $1.3 billion of tax debt payments before the end of the month.

The official press release published on the company’s website states that the company’s management is “currently making every effort to raise additional funds in order to repay, as soon as possible, the tax liability and to finance current operations. However, should those efforts prove unsuccessful and Yuganskneftegas is sold, in the present circumstances, the management of the Company would be compelled to announce the bankruptcy of Russia’s largest oil company”.

The price of Yukos shares fell by 12 percent within the first few minutes of the announcement of a possible bankruptcy.

Such an announcement was expected by the market. In the wake of the press conference, Reuters news service quoted an expert from Aton Capital brokerage firm, who said: “The speculation is that Yukos will declare bankruptcy in order to get better control over the asset liquidation process and to prevent its key assets being sold for cents on the dollar through direct sales by the bailiff service.”

It is unclear at the moment when exactly Yukos plans to announce its bankruptcy and whether it will be able to seize control over the sale of Yuganskneftegaz from the authorities before it is too late.

In addition to making financial announcements, the official statement by Yukos also reported about an appeal that the company filed to the Russian authorities. Among the appeal’s addressees were the Russian government, Justice Ministry, Court Bailiffs’ Service, Federal Property Agency and a number of other ministries. Yukos has asked the authorities not to allow the company’s bankruptcy. In its appeal the oil major offered the authorities to continue discussing possible restructuring of the company’s tax debt and asked that the government prevents a confiscation of Yukos’ production assets.


HERE