UK High Court Victory for Koza Altin in Ipek litigation
The High Court in London has delivered another blow to businessman Hamdi Akin Ipek, granting an injunction preventing him from using funds belonging to Koza Ltd, the English subsidiary of a publicly-listed Turkish mining conglomerate. Mr Ipek wanted to use millions of Koza Ltd's funds to pay for a personal international arbitration dispute between him and the Republic of Turkey.
Following a 2-day hearing in the High Court in London on 10 and 11 February 2020, Mr Jeremy Cousins QC (a Deputy Judge of the High Court) ruled on Monday that Koza Ltd's funds should not be used in support of the arbitration – in particular since it appeared the arbitration was being pursued based on a document of doubtful authenticity.
Mr Ipek had claimed he could not pay for the arbitration personally, and that without Koza Ltd's funds it could not go ahead. At the court hearing, however, Koza Altin submitted evidence showing that Mr Ipek and his family members had been "shuffling" more than $20million between them and dealing in luxury yachts. The Court heard that Mr Ipek must have access to sufficient funds of his own to pay for the arbitration. The judge was unimpressed by Mr Ipek’s failure to disclose his assets, deciding that "Mr Ipek's position remains shrouded with an uncertainty that Mr Ipek has done nothing to dispel" and that his refusal to cooperate to enable proper scrutiny of his asset position was "extremely unimpressive and unsatisfactory."
This week’s ruling means that Koza Ltd’s funds are preserved pending trial.
Hugo Plowman, the Partner at Mishcon de Reya LLP representing Koza Altin, commented:
"This is an important decision and a clear message from the English Court that Mr Ipek must stop using Koza Ltd’s funds to fight his campaign against Turkey. My client is delighted with this result which follows our major win in the Supreme Court last summer."
The decision is the latest in a series of defeats suffered by Mr Ipek in ongoing litigation over control of Koza Ltd.
Koza Ltd is the wholly-owned English subsidiary of Koza Altin, a publicly-listed mining conglomerate headquartered in Ankara. Koza Ltd was incorporated in 2014 and capitalised with £60million provided by its parent company, Koza Altin.
Over the course of the past 4 years, Koza Altin has taken action to stop these funds being used inappropriately. In 2016, the funds were frozen in order to preserve the value of the company pending resolution of the dispute. In 2017, Mr Ipek sought the Court's permission to release Koza Ltd’s funds to finance a raft of personal litigation, including £3million for an international arbitration claim that he planned to bring against Turkey on behalf of another company owned by him and his family called Ipek Investments Limited. Koza Altin contested his application, arguing that this was an inappropriate use of assets ultimately held for the benefit of Koza Altin’s shareholders. Koza Altin also argued that the arbitration was founded upon a fraudulent share purchase agreement (the SPA) and, since it was a sham, the Court should not sanction use of frozen funds to pursue the arbitration.
On that occasion, Richard Spearman QC (a Deputy Judge of the High Court) decided that the authenticity of the SPA underpinning Mr Ipek's right to bring the arbitration was "open to very serious doubt". This was upheld on appeal in 2019 when the Court of Appeal concluded that Mr Spearman was "plainly correct" in his assessment of the authenticity of the document and that "once there is accepted to be a seriously arguable case that the SPA was a forgery… the court plainly should not lend its authority to a transaction when there is a real possibility that the transaction is a fraudulent one".
In his judgment this week, Mr Cousins QC agreed with the earlier rulings. He confirmed that there "remain reasons for very serious doubt as to the SPA’s authenticity." This, he said, is "highly material" to Mr Ipek’s prospects of success in the arbitration.
Last summer, another issue was settled in Koza Altin’s favour when the Supreme Court dismissed Mr Ipek’s claims challenging the authority of directors appointed by the Turkish Court to represent Koza Altin. The decision represented the culmination of almost three years of litigation on jurisdiction.
What is left of the claim can now proceed to trial in England where the Court will decide who should be able to control Koza Ltd. Koza Altin maintains that Mr Ipek is improperly and unlawfully seeking to prevent it from exercising its rights as the 100% shareholder of Koza Ltd. Koza Altin is seeking the removal of Mr Ipek as a director of Koza Ltd in order to protect Koza Altin and its assets for the benefit of its shareholders, and in accordance with its regulatory obligations.
Conal Walsh / Jack Myers
+44 (0)7912 515089
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Piper Sandler Completes Acquisition of Preeminent Chemicals Investment Bank, The Valence Group4.4.2020 00:13:00 EEST | Press release
Piper Sandler Companies (NYSE: PIPR), a leading investment bank and institutional securities firm, today announced it has completed its acquisition of The Valence Group, a premier international investment bank specializing in the chemicals, materials and related sectors. The Valence Group will operate as Piper Sandler’s new chemicals & materials group, adding yet another industry-leading advisory practice to the Piper Sandler platform. In addition, Peter Hall, one of the founders of The Valence Group, will now lead Piper Sandler’s expansion of investment banking in Europe. Piper Sandler was advised by its wholly owned subsidiary, Piper Sandler & Co., and was represented by Sullivan & Cromwell LLP. Houlihan Lokey served as financial advisor and Dentons as legal advisor to The Valence Group in connection with the transaction. About Piper Sandler Piper Sandler is a leading investment bank and institutional securities firm driven to help clients Realize the Power of Partnership®. Through a
BitHull Overtakes ASIC Market with New FPGA Miners3.4.2020 20:38:00 EEST | Press release
BitHull S.A. ( www.BitHull.com ) is pleased to announce the launch of its two new crypto miners BH Miner and BH Miners Box. These miners have been built around Field Programmable Gate Array or FPGA mining technology, the latest breakthrough in crypto mining. FPGA mining makes use of the new generation of FPGA chips capable of delivering high hash rate power at low power consumption. Owing to its outstanding features, FPGA mining is expected to overtake ASIC mining very soon. BH Miner and BH Miners Box are multi-algorithm miners capable of mining bitcoin, litecoin, ethereum, and monero. BH Miners Box is a box combining 6 BH Miner units connected to each other. Mentioned below are the key features of the two miners. BH Miner Hash Rates: Bitcoin: 360 TH/s, Litecoin: 60 GH/s, Ethereum: 15 GH/s, and Monero: 3 MH/s BH Miners Box: Bitcoin: 2160 TH/s, Litecoin: 360 GH/s, Ethereum: 90 GH/s, and Monero: 18 MH/s Power consumption: 550W and 550W x6 for BH Miner and BH Miners Box respectively The o
Celltrion’s COVID-19 Antiviral Treatment Enters the Next Phase of Development3.4.2020 11:00:00 EEST | Press release
Celltrion Group today announced its successful transition to the second phase of development for an antiviral treatment to fight the novel coronavirus (COVID-19) pandemic, following the completion of the first phase of securing 300 different types of antibodies that bind to the antigen last month. The library of antibodies was created using the blood of recovered patients in Korea. In cooperation with the Korea Centers for Disease Control and Prevention (KCDC), Celltrion will be screening the antibodies to find the ones most effective in neutralising SARS-CoV-2, the virus responsible for COVID-19. Celltrion anticipates the candidate screening for the therapeutic monoclonal antibody (mAb) will be complete by mid-April, sooner than originally expected. Ki-Sung Kwon, Head of R&D Unit at Celltrion said, “Once we have selected the one that most effectively neutralizes the COVID-19 virus among hundreds of the screened antibodies, we will roll out mass production of the therapeutic antibody t
Oracle Water System of MAK Leads Prevention of COVID-19 in Korea3.4.2020 08:18:00 EEST | Press release
The ozone water produced by Oracle Water System was proved to be effective in preventing epidemics as it was used in Korea which is recognized as an exemplary country in addressing Coronavirus Disease-19 (COVID-19) drawing attention from the world. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200402005897/en/ The ozone water ‘Oracle Water’ produced by Oracle Water System was proved to be effective in preventing epidemics as it was used in Korea which is recognized as an exemplary country in addressing COVID-19 drawing attention from the world. ‘Oracle Water’ was begun to be used as sterilizing water in Daegu, Korea and demonstrated the remarkable effect of preventing COVID-19. The number of confirmed COVID-19 cases in the city decreased from 390 on March 7 when the sterilizing water was begun to be used to 297 cases on March 8, 190 cases on March 9 and to 32 cases on March 17, showing a reduction by 91.7%. Using plasma, Or
Strategic Investment of NXP in Kalray3.4.2020 00:52:00 EEST | Press release
Kalray (Euronext Growth Paris : ALKAL – the “Company”), a pioneer in processors for new intelligent systems, today announces a strategic investment from NXP Semiconductors N.V. (NASDAQ: NXPI) for €8 million (approximately US$9 million), to enable the companies to develop together safe, reliable and scalable solutions for autonomous driving, combining NXP Automotive solutions and Kalray MPPA® (Massively Parallel Processor Array) Intelligent Processors. The investment will be carried out through the reserved issuance to NXP BV, a company of the NXP Group, of 503,461 ordinary shares without pre-emptive rights for the existing shareholders of the Company. Upon settlement-delivery of the new shares, the NXP Group will hold ca. 9.95% of Kalray’s share capital and voting rights. The settlement-delivery of the new shares is scheduled for April 7, 2020 and their admission to the Euronext Growth Paris multilateral trading system is scheduled for April 8, 2020. STRATEGIC NATURE OF THE TRANSACTION
Kalray: Information About Covid-193.4.2020 00:05:00 EEST | Press release
Kalray (Paris:ALKAL) (Euronext Growth Paris : ALKAL), a pioneer in processors for new intelligent systems, is sharing the status on its activity and the continuation of its activity following the various health measures taken by the French government. The impact of Covid-19 epidemic on Kalray’s research and development activity, which is not too dependent on its suppliers, is expected to be limited and Kalray is hopeful it will be able to stick to its development roadmap. The development teams are fully operational thanks to telework, which was put in place as soon as the containment was announced in France on Monday March 16. The company does not use technical unemployment to date. However, the global health situation related to the Covid-19 epidemic and the containment measures implemented in many countries are likely to slow down business cycles, which could delay the deployment of some of company’s projects. At this stage, Kalray is currently assessing all the impacts of this crisi
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom