The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The bondholder treatment at the heart of the Petropavlovsk brawl

The battle for control of Petropavlovsk has been raging since the board and management were unexpectedly voted out at the AGM in June. But only now has it become clear the role a conversion of bonds may have played. At issue are allegations of unequal bondholder treatment.

gallery-10-960.jpg

For much of the year, the mining community has been entranced by a boardroom battle at London-listed Russian gold mining company Petropavlovsk, a clash that has involved the ousting of the founders, court disputes, a complaint to the Takeover Panel of the London Stock Exchange, the departure of auditors and the sight of a temporary CEO breaking into his own offices in Moscow.

It has now emerged that one of the key points of contention is a question about the treatment of convertible bondholders, a matter that may have impacted the question of control of the company and its assets. The allegations have come to light through witness statements seen by Euromoney in a separate interim relief claim before an employment tribunal.

Battle lines

First, the background.

Petropavlovsk was founded as Peter Hambro Mining in 1994 by Hambro himself and Pavel Maslovskiy.

It owns assets in the Russian Far East, specifically Amur Oblast, which borders China to the north of Heilongjiang.

Peter Hambro Co-Founder And Outgoing Executive Chairman Of Petropavlovsk Plc
Peter Hambro. Source: Bloomberg via Getty Images

It was listed on the Alternative Investment Market in 2002, then the main board of the London Stock Exchange in April 2009, changing its name to Petropavlovsk PLC in September that year.

The

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

Tags

Chris Wright is Asia editor. He covers the Asia Pacific region and is based in Singapore. He has previously been Middle East editor of Euromoney, editor of Asiamoney, investment editor of the Australian Financial Review and a correspondent on emerging markets and sovereign wealth for numerous publications worldwide. He has also written two books.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree