Kerch-based Zaliv Shipyard OJSC announces a hostile takeover by an LLC of the same name.

The management of the plant and shareholders of the Zaliv Shipyard OJSC (Kerch, Autonomous Republic of Crimea) report a raider takeover of the enterprise, carried out on August 24 by the Zaliv Shipyard LLC (Moscow) with the forceful participation of the Crimean self-defense forces.

"Throughout the day on August 24, 2014, the hijackers exerted pressure on the director of the Zaliv Shipyard OJSC (Kerch) to force him to sign a lease agreement with a shell company, Zaliv Shipyard LLC (registered several days earlier in Moscow), with an authorized capital of 10 rubles," the OJSC said in a statement on Tuesday.

According to the report, the plant's general director notified Crimean security forces about the corporate raid, but no procedural action was taken by the police or the FSB, nor by the special police that arrived at the scene.

The JSC clarifies that at 10:00 on August 25, the raiders organized a staff meeting, at which a representative of the Zelenodolsk Plant named after A.M. Gorky (Tatarstan, Russia) A. Zherdev introduced himself as the director of the Zaliv Shipyard LLC (Moscow) and announced that the LLC had taken a long-term lease on all production facilities of the JSC of the same name, despite the fact that no lease agreements had been signed by any of the legal management of the enterprise.

In addition, employees were offered to resign from the Zaliv Shipyard (Kerch) and transfer to work for the Moscow LLC of the same name, according to a statement from the Crimean enterprise.

It adds that throughout the day, raiders carried out illegal actions to seize documents from the enterprise: they broke into offices, confiscated founding documents and seals, and as of August 26, the plant remains blocked, with legitimate management not allowed onto its premises.

"The company's shareholders and management call on the relevant law enforcement agencies of Crimea and the Russian Federation to investigate the current situation within the legal framework, assist in returning the plant to its rightful owners, hold those involved in the hostile takeover accountable, and allow the company to operate normally," the press service of the JSC's board of directors noted.

Earlier on Tuesday, the press service of the Crimean Ministry of Information and Communications issued a press release on behalf of Zaliv, according to which Ukrainian businessman Konstantin Zhevago had been removed from his position as head of the company.

The statement alleged that K. Zhevago illegally took possession of the plant's shares and used them to launder illicit income.

A week earlier, Crimean Industry Minister Andrei Skrynnik reported that the Zaliv plant was practically non-functional, and Russian companies were negotiating with its owner to buy the enterprise.

JSC "Shipbuilding Plant "Zaliv" (Kerch) is one of the largest shipbuilding and ship repair enterprises in Ukraine, specializing in the construction of tankers, chemical and container ships, drilling platforms for oil and gas production.

Since its inception in 1938, the company has manufactured more than 500 civilian vessels and more than 329 military ships, which are in service in many countries around the world, including the flagship of the Ukrainian Navy, the frigate Hetman Sahaidachny.

Exports account for over 95% of total sales. The main customers are Norway and the Netherlands.

Zaliv's net income in 2013 decreased by 12,1% to UAH 274,75 million, while its net loss amounted to UAH 79,32 million, compared to a net profit of UAH 5,58 million the previous year.

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