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Yukos asks court to reconsider dismissal of Chapter 11 case
New York, Feb. 25 - Yukos Oil Co. filed a motion asking the U.S. Bankruptcy Court for the Southern District of Texas to reconsider its decision to dismiss its Chapter 11 case.
Yukos said that the court should have considered what was best for the estate and argued that "there is substantial evidence that dismissal of the Yukos bankruptcy case is not in the best interest of the estate."
"Yukos, our shareholders, creditors and our employees are clearly better off if we are able to continue with our bankruptcy case in the U.S. court and we are allowed to pursue damages against those parties that conspired with the Russian Government to expropriate Yuganskneftegas in violation of the automatic stay," said Steve Theede, chief executive officer of Yukos, in a news release.
In dismissing the case, judge Letitia Clark noted that based on the assets listed in its court filings Yukos' Chapter 11 case was the largest ever in the United States.
"However, the debtor is not a United States company, but a Russian company, and its assets are massive relative to the Russian economy, and, since they are primarily oil and gas in the ground are literally a part of the Russian land," Clark continued.
"While there is precedent for maintenance of a bankruptcy case in the United States by corporations domiciled outside the United States, none of those precedents cover a corporation which is a central part of the economy of the nation in which the corporation was created."
Deciding to dismiss the case, Clark said that Yukos is not seeking a financial reorganization because its assets are oil and gas and its ability to reorganize without the cooperation of the Russian government is "extremely limited."
The funds transferred to the jurisdiction of the court were transferred only one week before the filing and with the goal of making the Chapter 11 filing possible, she added.
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