On Thursday November 29, the High court of Hamilton (Bermuda) validated a matter settlement agreement between Bermuda company IPOC International Growth Fund Limited and BVI-registered LV Finance Group Limited, owned by Alpha Group. The court’s validation finally brings to an end a series of global litigations and arbitrations which took place during the last years.
The dispute between the companies, which was more than USD 2 billion worth, included arbitrations in Zurich and Geneva, related actions in the British Virgin Islands, Bermuda and other jurisdictions. The last suit discussed in our blog was brought by BVI Public Prosecution’s Office against Russian Telecom Minister Leonid Reiman. Also, recently, as a result of legal battle between the Bermuda and BVI-based companies, a civil tribunal in Switzerland has concluded that Reiman secretly owns stakes in Russian telecoms through the IPOC fund. This ruling of the BVI court is said to be a politically-motivated attack against M.Friedman who controlled Alpha Group.
The actions that started in September 2003 caused much response in the international press. The initial dispute was over a 25% stake in Russian mobile phone operator MegaFon. IPOC claimed to have bought the stake in 2001 from LV Finance Group, while the BVI company still owned this stake.
The settlement agreement required Court approval, which was obtained from Justice Jan Kawaley. SJ Berwin partner Justin Michaelson acting on behalf of LV Finance Group Limited said: “This represents a terrific result for LVFG and is a vindication of our client’s position in response to all IPOCs claims.” Other lawyers acting on behalf of the BVI group were Jeffrey Elkinson of Conyers Dill and Pearman, and Dr Balz Gross of Homburger Rechtsanwälte.