Kernel Company Wants to Recover UAH 1.75 Billion from Sens Bank – Lawsuit in the Kyiv Commercial Court
The Kernel group, through the Cypriot company Etrecom Investments Limited, filed a lawsuit with the Commercial Court of Kyiv against the state-owned "Sens Bank" and the company Greatford Limited to recover an amount equivalent to about UAH 1.75 billion. This was reported by former editor of "Economic Truth" Serhiy Lyamets in his Censor.net blog.
It is reported that formally the lawsuit is filed against two defendants — "Sens Bank" and Greatford Limited. Media note that the second company is a technical offshore, which is under sanctions and has no funds. According to the author, the real purpose of the lawsuit is to recover a debt from the state bank that has no relation to it. At the same time, the debt has already been restructured, and the Dutch EMIS promises to repay it by 2029.
The dispute concerns Loan Participation Notes — debt instruments issued by the Dutch structure EMIS to finance the "Sens Bank" group before nationalization. Kernel received these papers not from "Sens Bank," but from Greatford Limited, registering them under Etrecom Investments Limited.
The author assesses the legal chances of such a lawsuit as weak. He points out that Kernel must prove a direct connection between Greatford Limited, Etrecom Investments Limited, and "Sens Bank," as well as explain why the state bank should be responsible for a transaction executed between two Cypriot offshore companies regarding papers of a Dutch company. Moreover, the state has repeatedly stated that it does not recognize the debts of previous owners of "Sens."
If Kernel manages to push the decision in its favor, "Sens Bank" may be forced to pay UAH 1.75 billion ($39 million at the current exchange rate). In addition, this could open the way for similar lawsuits from other LPN holders, potentially meaning billions more in claims against the state bank.
It is separately noted that the Ministry of Finance participates in the case as a representative of the state's interests — the owner of "Sens Bank."
It is noted that if "Sens Bank" loses, the state may face an additional fiscal risk. The bank will either have to lose capital, or the government will have to find funds to recapitalize it. This, in turn, may complicate the implementation of IMF and EU programs aimed at stabilizing the state banking sector.
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