Deutsche Bank Asks Houston Court to Dismiss Yukos Bankruptcy Case

Deutsche Bank filed a motion with a Houston federal court Tuesday afternoon to dismiss Yukos’ claim for bankruptcy protection. The investment firm said the Russian oil giant had tried to “artificially manufacture” a presence in the U.S. in order to seek bankruptcy protection, The Wall Street Journal reported. Yukos filed for Chapter 11 bankruptcy protection earlier this month to stave off a forced auction by Russian authorities of its major oil-producing assets to pay a tax claim. But its chief asset, Yuganskneftegaz, was still forcefully auctioned off earlier this month to a previously unknown firm, Baikalfinansgroup. Deutsche Bank was one of a consortium of banks — including ABN Amro and Dresdner Kleinwort Wasserstein — that had intended to fund a $10 billion bid by Russian state-owned gas giant Gazprom to buy Yuganskneftegaz, which produces 60 percent of Yukos’ oil. Yukos established jurisdiction in the United States because it had a bank account in Houston and its chief financial officer Bruce Misamore had recently moved to Houston and was working there. Earlier, U.S. Judge Letitia Clark had granted an injunction to prevent Gazprom and its lenders, led by Deutsche Bank, from participating in the auction. The banks pulled out, but the auction went ahead and Yuganskneftegaz was sold to the unknown Baikalfinansgroup for $9.37 billion, which then sold it to another company being acquired by Gazprom. A Yukos spokesman said they would fight Deutsche Bank’s motion, WSJ reported. Yukos has said it plans to determine who financed Baikal’s bid and plans to seek $20 billion in damages. Deutsche Bank’s attempt to dismiss the bankruptcy claim could undermine its legal position in U.S. Courts.