UK High Court Victory for Koza Altin in Ipek litigation
The High Court in London has delivered another blow to businessman Hamdi Akin Ipek, granting an injunction preventing him from using funds belonging to Koza Ltd, the English subsidiary of a publicly-listed Turkish mining conglomerate. Mr Ipek wanted to use millions of Koza Ltd's funds to pay for a personal international arbitration dispute between him and the Republic of Turkey.
Following a 2-day hearing in the High Court in London on 10 and 11 February 2020, Mr Jeremy Cousins QC (a Deputy Judge of the High Court) ruled on Monday that Koza Ltd's funds should not be used in support of the arbitration – in particular since it appeared the arbitration was being pursued based on a document of doubtful authenticity.
Mr Ipek had claimed he could not pay for the arbitration personally, and that without Koza Ltd's funds it could not go ahead. At the court hearing, however, Koza Altin submitted evidence showing that Mr Ipek and his family members had been "shuffling" more than $20million between them and dealing in luxury yachts. The Court heard that Mr Ipek must have access to sufficient funds of his own to pay for the arbitration. The judge was unimpressed by Mr Ipek’s failure to disclose his assets, deciding that "Mr Ipek's position remains shrouded with an uncertainty that Mr Ipek has done nothing to dispel" and that his refusal to cooperate to enable proper scrutiny of his asset position was "extremely unimpressive and unsatisfactory."
This week’s ruling means that Koza Ltd’s funds are preserved pending trial.
Hugo Plowman, the Partner at Mishcon de Reya LLP representing Koza Altin, commented:
"This is an important decision and a clear message from the English Court that Mr Ipek must stop using Koza Ltd’s funds to fight his campaign against Turkey. My client is delighted with this result which follows our major win in the Supreme Court last summer."
The decision is the latest in a series of defeats suffered by Mr Ipek in ongoing litigation over control of Koza Ltd.
Koza Ltd is the wholly-owned English subsidiary of Koza Altin, a publicly-listed mining conglomerate headquartered in Ankara. Koza Ltd was incorporated in 2014 and capitalised with £60million provided by its parent company, Koza Altin.
Over the course of the past 4 years, Koza Altin has taken action to stop these funds being used inappropriately. In 2016, the funds were frozen in order to preserve the value of the company pending resolution of the dispute. In 2017, Mr Ipek sought the Court's permission to release Koza Ltd’s funds to finance a raft of personal litigation, including £3million for an international arbitration claim that he planned to bring against Turkey on behalf of another company owned by him and his family called Ipek Investments Limited. Koza Altin contested his application, arguing that this was an inappropriate use of assets ultimately held for the benefit of Koza Altin’s shareholders. Koza Altin also argued that the arbitration was founded upon a fraudulent share purchase agreement (the SPA) and, since it was a sham, the Court should not sanction use of frozen funds to pursue the arbitration.
On that occasion, Richard Spearman QC (a Deputy Judge of the High Court) decided that the authenticity of the SPA underpinning Mr Ipek's right to bring the arbitration was "open to very serious doubt". This was upheld on appeal in 2019 when the Court of Appeal concluded that Mr Spearman was "plainly correct" in his assessment of the authenticity of the document and that "once there is accepted to be a seriously arguable case that the SPA was a forgery… the court plainly should not lend its authority to a transaction when there is a real possibility that the transaction is a fraudulent one".
In his judgment this week, Mr Cousins QC agreed with the earlier rulings. He confirmed that there "remain reasons for very serious doubt as to the SPA’s authenticity." This, he said, is "highly material" to Mr Ipek’s prospects of success in the arbitration.
Last summer, another issue was settled in Koza Altin’s favour when the Supreme Court dismissed Mr Ipek’s claims challenging the authority of directors appointed by the Turkish Court to represent Koza Altin. The decision represented the culmination of almost three years of litigation on jurisdiction.
What is left of the claim can now proceed to trial in England where the Court will decide who should be able to control Koza Ltd. Koza Altin maintains that Mr Ipek is improperly and unlawfully seeking to prevent it from exercising its rights as the 100% shareholder of Koza Ltd. Koza Altin is seeking the removal of Mr Ipek as a director of Koza Ltd in order to protect Koza Altin and its assets for the benefit of its shareholders, and in accordance with its regulatory obligations.
Conal Walsh / Jack Myers
+44 (0)7912 515089
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
VR Fitness Developer FitXR Secures $7.5 Million In Series A Venture Round Led by Hiro Capital10.7.2020 08:00:00 CEST | Press release
FitXR, the leading VR fitness company, today announces that it has secured $6.3m in investment funding, led by Hiro Capital, with continued support from U.S.-based BoostVC, Maveron and TenOneTen Ventures, together with an additional $1.2m in the form of an innovation loan, from Innovate UK. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200709005856/en/ Cherry Freeman, Co-Founding Partner, Hiro Capital (Photo: Business Wire) FitXR, who had previously secured $1.25 million in seed funding from investors, will use the new investment to expand its operations in Europe and North America, and to accelerate launch of several exciting new products and services for people to keep fit in Virtual Reality. The investment marks a significant show of belief in FitXR, who over the last year has grown to become one of the leaders of the VR fitness sector, with its mission to put the fun back into fitness. Its first product, the boxing rhyt
Laboratory Studies Confirm BETADINE® Antiseptic Products’ Effectiveness Against COVID-19 Virus10.7.2020 00:37:00 CEST | Press release
Mundipharma today announced that laboratory testing at the Duke-NUS Medical School in Singapore, has confirmed the effectiveness of its BETADINE® antiseptic products against the novel coronavirus (SARS-CoV-2) which causes COVID-19 disease. Testing has demonstrated BETADINE’s® strong in-vitro virucidal activity, killing 99.99% of the SARS-CoV-2 virus in 30 seconds. The products subjected to testing were: BETADINE® antiseptic products, namely Solution (10% PVP-I), Skin Cleanser (7.5% PVP-I), Gargle and Mouthwash (1.0% PVP-I) and Throat Spray (0.45% PVP-I). The research has been published in the respected Infectious Disease and Therapy Journal on 08 July 2020. “These results confirm our view that BETADINE® antiseptic products, used appropriately and in conjunction with other preventative treatment options including PPE, can play a role in limiting the spread of infections, including COVID-19,” said Raman Singh, CEO Mundipharma. “It also provides the medical community as well as consumers
New Evidence Shows Morinaga Milk’s Probiotic Bifidobacterium breve A1 Improves Memory of Older Adults With Cognitive Dysfunction9.7.2020 20:00:00 CEST | Press release
Morinaga Milk Industry Co., Ltd. (TOKYO:2264), a leading Japanese dairy product company and a key global probiotics manufacturer, confirmed that its proprietary probiotic strain Bifidobacterium breve A1 (a.k.a. B. breve MCC1274) is safe and effective for improving memory functions of older adults with suspected mild cognitive impairment (MCI) in a randomized, double-blind, placebo-controlled trial (RCT). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200709005032/en/ Figure 1. Changes of RBANS scores at 16 weeks from baseline. Values are indicated as mean with error bars as the standard error. **p<0.001, ***p<0.0001, inter-group difference, Student’s t-test. (Graphic: Business Wire) The new study, published recently in the Journal of Alzheimer’s Disease, has produced breakthrough results uncovering a novel promising probiotic intervention for early dementia prevention. The clinical study conducted by a clinical research orga
rf IDEAS and Ricoh Simplify Secure Access to Multifunction Printers9.7.2020 18:05:00 CEST | Press release
rf IDEAS, a leading manufacturer of credential readers for authentication and logical access, today announced with Ricoh the integration of its WAVE ID® Plus dual-frequency card reader technology with Ricoh’s Smart Operation Panel (SOP), Gen 2.5. The new WAVE ID Ricoh Universal SOP Reader is the most innovative reader for secure pull-print applications with Ricoh multifunction printers. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200709005764/en/ WAVE ID® Ricoh Universal SOP Reader (Photo: Business Wire) rf IDEAS and Ricoh have a proven record of working together to deliver secure workplace solutions that feature the most advanced identification and authentication capabilities. “As we continue our worldwide partnership with a leader in the print industry, we are delighted that Ricoh chose rf IDEAS to develop an innovative credential reader design that connects to its A3 multifunction devices,” said Tod Besse, senior vice
Immersive Labs Adds Tenable Co-Founder and Security Industry Veteran Jack Huffard to its Board of Directors as Demand for Improving and Measuring Cyber Talent Grows9.7.2020 17:46:00 CEST | Press release
Immersive Labs, the company empowering organizations to equip, exercise, and evidence human cyber capabilities, announced Jack Huffard, a co-founder and board member of Tenable (Nasdaq: TENB) will join its board of directors to help drive growth. This comes on the heels of Immersive Labs’ recent expansion into the U.S. market, backed by Goldman Sachs and Summit Partners with $50M in financing, after four successful years of fast-growth and an impressive customer roster in the UK and the U.S. With the addition of Huffard to the board, a cybersecurity industry business leader who helped Tenable through its fast growth and successful IPO, the Immersive Labs team is well-suited for its next phase of innovation and market leadership. Huffard also currently serves as a board director for Norfolk Southern Corporation (NYSE: NSC) and is a member of the National Security Telecommunications Advisory Committee (NSTAC), helping the US government navigate pressing national security issues and stren
Jonckers Announces New CEO9.7.2020 17:08:00 CEST | Press release
Jonckers, a global leader in language platform technology and multilingual solutions, today announced that its Board of Directors has appointed Silke Zschweigert as Chief Executive Officer, effective immediately. Zschweigert previously held the position of Chief Revenue Officer. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200709005715/en/ Silke Zschweigert Newly appointed CEO of Jonckers - a global leader in language platform technology and multilingual solutions (Photo: Business Wire) “I’m very privileged to be asked by the Board to be the next CEO of this dynamic and forward-thinking company,” said Zschweigert. “The company transitioned from being a pure language service provider to an AI-driven Language Platform with a multilingual community. I look forward to scaling this capability and further developing advanced solutions creating significant value for Enterprises going global.” Zschweigert succeeds Geo Janssens who