Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Court Rules in Favor of New Lomonosov Board




ST. PETERSBURG -- The Nevsky Regional Civil Court ruled Monday that the Jan. 20 shareholders' meeting of the Lomonosov Porcelain Factory, at which Western investors took control of the board and appointed an American as the new director, was legal.


The court handed down its decision in favor of the plant's Western majority stakeholders, rejecting charges brought by the plant's union leader and shareholder, Larisa Konyagina, that the meeting was held against the law.


The January shareholders' meeting was the first held since April 1998. Five previous attempts to hold a meeting to elect a new board had failed, after the plant's previous management filed injunctions with courts ruling in their favor.


Another suit brought by shareholder and former public relations manager of the plant, Galina Agarkova, against the legality of the shareholders meeting, will be heard Feb. 14


On Jan. 29, foreign investors, who include the U.S. Congress-financed U.S. Russia Investment Fund and individual partners of New York takeover kings Kohlberg Kravis Roberts & Co., or KKR, took over the 255-year-old plant following the shareholders' meeting.


Western stakeholders, who own 84 percent of the factory shares, are still battling an Oct. 11 arbitration court decision that declared the 1993 privatization of Lomonosov illegal. A higher court is scheduled to hear their appeal on Feb. 17 against that decision.