Yukos files for US bankruptcy protection to stop Russian sell-off

[JURIST] Russian oil giant Yukos, currently caught up in a titanic financial struggle with the Russian government over the payment of back taxes (see a Yukos release on the tax claims here) while its imprisoned former CEO Mikhail Khodorkovsky is on trial for fraud, has filed for protection with a US bankruptcy court in Texas in a last-ditch bid to stop Russian authorities from selling off its main production arm. The filing is ostensibly problematic as Yukos has no US assets, but a Yukos press release explains: It explains:

The company made the filing in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. U.S. Bankruptcy law has worldwide jurisdiction over property of the debtor and the Company is seeking a judiciary that will protect the value of all shareholder's investment in Yukos. Houston is a major international oil and gas center. Yukos has assets and business dealings in the area. In addition, the Company's Chief Financial Officer is currently fulfilling his management responsibilities from Houston.
Read the full text of the release here here. BBC News has more.

 

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