Yukos' restraining order covers numerous banks

New York, Dec. 17 - The temporary restraining order obtained by Yukos Oil Co. bars a whole series of banks from taking action in the sale of the Russian company's Yuganskneftegas subsidiary.

Covered by the court's order are: OOO Gazpromneft, ZAO Intercom, OAO First Venture Co., ABN Amro, BNP Paribas, Calyon, Deutsche Bank AG, JP Morgan, Dresdner Kleinwort Wasserstein and their officers, agents, employees, attorneys and anyone acting with these companies.

Any action with respect to Yuganskneftegas is barred for the period of the order, 10 days from its date and time of entry. The order was signed on Dec. 16 at 7:01 p.m.

In her opinion, judge Letitia Clark described the auction of Yuganskneftegas as "inconsistent with the regular application of Russian law within Russia."

She noted that the harm to Yukos would be irreparable if the auction, scheduled for Dec. 19, goes ahead.

Yukos 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 had asked the court to issue a temporary restraining order to halt the Russian government's planned auction of the oil company's Yuganskneftegas unit. 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.

In her opinion, the judge noted testimony that Yukos has $2 million in an account at Southwest Bank of Texas plus a further $6 million in the trust account of its attorneys. The amounts are Yukos' principal assets in the United States.

Courts in previous cases have noted there is "virtually no formal barrier" to foreign cases being adjudicated in federal courts although "nominal amounts" of property must be located in the United States.

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

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