JSC „Latvian Shipping Company” asks the Court to void the fictitious deal with LSC shares between IBI and two offshore companies

Public joint-stock company „Latvian Shipping Company” (LSC) has lodged a complaint in Riga regional court appealing to acknowledge as void the deals with LSC shares between JSC „International Baltic Investments LTD” (IBI) and offshore companies „Ojay Limited” (Ojay) and „Eastgate Properties Limited” (Eastgate).

LSC supports the complaint with several documents at their disposal that clearly show that the deals with LSC shares between the above mentioned parties in reality have fictitious and manipulative character with an aim to hide the stock, as it was acknowledged by a representative of the Economic Police Department of the Central Criminal Police Department of the State Police in 2008.

Taking into consideration that with these fictitious deals LSC interests as a share issuer are affected in the most direct way, in the claim statement LSC appeals to acknowledge abeyant the deal between IBI and Ojay about LSC 35 315 568 share purchase and the deal between IBI and Eastgate about LSC 19 783 784 share purchase as well as exact all litigation expenses for the good of the claimant.

The essence of the fictitious deals is clearly demonstrated by the fact that already on 1 February 2008 Ojay and Eastgate shares were transferred to an IBI account although legally the deal was completed on 4 February as IBI itself has indicated in the letter to LSC. In compliance with the standards of the Civil law the agreement is considered utterly completed only when a complete agreement has taken place between the contractors concerning essential parts of the deal. Also in compliance with the Law on the Market of Financial Instruments dishonest deals and market manipulations with financial instruments are forbidden.

Moreover on 7 February 2008 LSC received an announcement from IBI dated a day earlier about obtaining essential direct co-partnership of 27,55% or 55 099 352 bearer`s shares LSC indicating the date of obtaining these shares on 4 February the same year. On 11 February 2008 LSC received announcements also from Ojay and Eastgate that on the same date, on 4 February, these companies have also obtained a significant co-partnership in LSC totalling the same amount of shares that was indicated previously by IBI. In the two announcements of the offshore companies the return address was indicated as „Heidelberga audits” Ltd., but in the name of IBI it was signed by Arnis Nīcgalis – one of the owners of „Heidelbergas audits” Ltd. No corrections or adjustments in these contradictory announcements that are excluding one another have been received in LSC till now.

More detailed information:
Marita Ozolina-Tumanovska
Manager of PR & Advertising Department
Phone: +371 67020120, 29287169
E-mail : marita.ozolina@lscgroup.lv