Yukos files for bankruptcy in Texas, seeks restraining order against Russian government

By Jeff Pines

Washington, Dec. 15 - Moscow-based Yukos Oil Co. filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas Tuesday and filed a lawsuit against the Russian government and a number of bankers.

Yukos wants the court to issue a temporary restraining order to halt the Russian government's planned auction of the oil company's Yuganskneftegas unit on Dec. 19. Yuganskneftegas owns or has the benefit of the majority of Yukos' oil and gas reserves, the company said. More than 60% of Yukos' gas and oil production comes from Yuganskneftegas. Yukos estimates the subsidiary's assets are worth more than $20 billion.

About 25% of Yukos' equity is owned by organizations of which many are American residents. The oil company alleges the Russian government has singled it out and is unfairly taxing it to death to the amount of $27.5 billion. However, in an amended creditor list, Yukos put its alleged back taxes at $17 billion. As a result, U.S. investors have been unfairly suffering a loss to their investments, Yukos alleged.

It is further concerned that the only bidder will be the state-controlled Gazprom. With bids expected to start at $8.65 billion, Yukos said Gazprom could win Yuganskneftegas at a price of about half of the Russian government's appraisal of $15.7 billion to $18.6 billion.

Gazprom's bankers include ABN Amro, BNP Paribas, Deutsche Bank, JP Morgan, Dresdner Kleinwort Wasserstein and others.

Yukos said it can prove the Russian government's tax assessments violate Russian law or international standards.

The company estimates its total assets at $12.28 billion and its total liabilities at $30.79 billion including back taxes it allegedly owes the Russian government.

Major creditors, other than the Russian government, include Societe Generale with a $1.43 billion trade claim, the State Customs Committee of the Russian Federation with a $185 million trade claim, Transneft with a $73 million claim, and Zapadno MalyBalyk with a $28 million trade claim.

Major shareholders include Hulley Enterprises Ltd. with a 48.7% stake, Deutsche Bank Trust Co. Americas with about an 18.3% stake, and UBS AG with about a 10% stake.

A hearing on the temporary restraining order is scheduled for Dec. 16.

Yukos' Chapter 11 case number is 04-47742. The lawsuit's case number is 04-03952.

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