The 9th court of appeals has refused to make Mechel sell Vadim Varshavsky the shares of Daveze Limited, owner of Donetsk Electrometallurgical Plant.
In 2009 Varshavsky Estar Group failed to return the debt to Alfa-Bank, and the bank took DEMZ (formerly known as Istil Ukraine).
According to the default agreement, the management of the works went to A1 Investments. In 2010 100% of the DEMZ shares were given to Daveze Limited (Cyprus).
In December 2011 Mechel acquired this offshore company for $537 million.
In August 2013 Mechel decided to sell the shares to Varshavsky for mere 2 thousand euro. But in May 2014 it was announced that Mechel wanted to sell the company to an unnamed buyer for $80 million.
At the same time, this January Mechel-steel CEO Vladimir Tytsky said, Mechel wasn’t going to sell the works. But DEMZ still remains idle. (Ukrainian metal)