Tashkent, Uzbekistan (UzDaily.com) -- Metalloinvest Holding (Cyprus) Limited (41.87%) and Miramonte Investments Limited (8.23%), which together held a controlling stake in the Tashkent Metallurgical Plant (TMZ), are excluded from composition of the founders of the plant in accordance with the decision of the court.

On 22 June, the Judicial Collegium for Economic Affairs of the Supreme Court of Uzbekistan considered the case of the founders of the Tashkent Metallurgical Plant (TMZ) for the production of cold-rolled steel with galvanized and polymer coatings.

The Fund for Reconstruction and Development of Uzbekistan (49.9%, FRDU) filed a lawsuit against the Cypriot Metalloinvest Holding (Cyprus) Limited and Miramonte Investments Limited with a request to exclude these companies from the founders of TMZ.

FRDU said in a statement that the plant is experiencing financial difficulties. At the end of the 2022 financial year, the net loss amounted to 316.8 billion soums. The accumulated loss for 2017-2022 is 916.92 billion soums. FRRU notes that in order to improve the financial condition of the plant, it is necessary to take urgent measures.

In particular, the founders of the plant must approve the business plan developed for 2023 and extend the repayment periods for previously raised loans that have already expired. It is necessary to attract additional financial resources.

To approve decisions on these issues, it is necessary to hold a meeting of the founders and approve these measures by a majority vote. But the other founders of the plant do not take part in the meeting, which leads to the lack of a quorum for the meeting.

TMZ several times sent a notification to all founders, including Metalloinvest Holding and Miramonte Investments, about convening the next general meeting of participants with a list of issues on which it is critical to make decisions.

Oskol Electrometallurgical Plant, which owns 100% of the shares of the Cypriot Metalloinvest Holding, in its letter from 5 May notified that the defendant refuses to participate in the activities of the plant, including taking part in general meetings of the company’s participants. The Oskol Electrometallurgical Plant did not object to her exclusion from the society.

Since March 2022, Miramonte Investments has not participated in the activities of the plant, including in general meetings of the company’s participants, and leaves the company’s appeals unanswered.

The FRDU notes that the inaction of the founders makes it impossible to make the most important decisions for the society for the implementation of measures for financial recovery, which, in turn, makes it impossible for the company to fulfill obligations to creditors and, in fact, puts the company at risk of bankruptcy.

The Judicial Collegium for Economic Affairs of the Tashkent City Court satisfied the claim of the FRRU and the Cypriot companies were excluded from the founders of the plant.