FESCO (‘FESCO’, the ‘Group’) announced that on 15 September 2020 the management of the Group in accordance with the decision of the Board of Directors filed lawsuits against several shareholders demanding to return the loans issued to them. The loans had been used for a buyback of the Group’s assets.
The claims were filed to the London Court of International Arbitration by FESCO’s affiliate against the companies associated with Ziyavudin Magomedov.The claims were filed in accordance with the task set for the Group’s new management by the Board of Directors. These actions can help improve the financial performance of the company and have a positive impact on FESCO's partners and lenders. Earlier the new management team was also instructed to revise the business plan of the Group, update the strategy and provide the liquidity increase and long-term financial stability of all key business segments of FESCO.