Centerra Gold Inc. announced additional actions to protect the interests of Centerra and its stakeholders in response to the unjustified seizure of Kumtor mine by the Government of the Kyrgyz Republic. Official statement of the company says.
As noted, the actions are designed to preserve the value of Centerra’s wholly owned subsidiaries that own and operate the Kumtor mine, Kumtor Gold Company (KGC) and Kumtor Operating Company (KOC), and prevent any further efforts by the Kyrgyz Government to strip KGC of its assets or otherwise improperly dispose of the Kumtor mine in violation of its investment agreements with the Company.
Consistent with these objectives, KGC and KOC commenced a filing in the Southern District of New York under Chapter 11 of the federal U.S. Bankruptcy Code. The court-supervised process provides, among other things, for a worldwide automatic stay of all claims against KGC and KOC.
«We have repeatedly asked the Kyrgyz Government to discuss its concerns with us, yet it has refused to engage with us in any way. While we remain willing and available to hold a constructive dialogue with the Kyrgyz authorities, we will continue to use all available legal and financial means to protect the interests of Centerra and its stakeholders from the Government’s concerted and premeditated effort to take control of the Kumtor mine,» Scott Perry, President and Chief Executive Officer of Centerra, said. «In particular, we will continue to pursue arbitration proceedings to enforce the longstanding agreements with the Kyrgyz Republic that give Centerra, KGC and KOC the right to own and operate the Kumtor mine.»
Those agreements are governed by New York law, and we expect the U.S. court proceedings will serve to further protect Centerra’s interests under their terms pending a restructuring or other resolution of the dispute.
Scott Perry
Centerra Gold Inc. announced arbitration proceedings against the Government of the Kyrgyz Republic to protect its rights in accordance with longstanding investment agreements.
Ex-Prime Minister of Kyrgyzstan Omurbek Babanov was detained within the Kumtor case. MPs Torobai Zulpukarov and Asylbek Jeenbekov were placed in the remand prison of SCNS for two months. Ex-Prime Minister Temir Sariev was interrogated. It turned out that later that the State Committee for National Security also interrogated the former MPs Tursuntai Salimov and Sergei Ibragimov.
Offices of Kumtor Gold Company were searched on May 15. It became known later that the investigative measures were carried out within a criminal case opened on the fact of corruption. The head of the State Committee for National Security, Kamchybek Tashiev, said that there have been four criminal cases related to the Kumtor mine.
Tengiz Bolturuk was appointed an external manager at the company.
