Edwin Coe guides Orient Express investors to a sunny destination as Russia’s Sovcombank buys Vostochny Bank (Orient Express Bank)

Edwin Coe has been advising bondholders in Vostochny Bank (often translated to Orient Express Bank) and is pleased to have resolved issues relating to the bonds held by investors in Orient Express Bank with the purchase of shares from the key shareholders in Vostochny Bank by Sovcombank. The acquisition of Vostochny follows the acquisition by Sovcombank of MetLife Russia earlier this year.

David Greene, partner in Edwin Coe LLP said “Vostochny Bank (often referred to as Orient Express Bank) has been mired in controversy since U.S. investor Michael Calvey, the founder of private equity group Baring Vostok, was detained along with other fund executives in 2019 after state investigators accused them of embezzlement related to the bank.”

“The issue the bondholders had was unrelated but turned on a change to the terms of the bonds. With claims of US$75 million the issue looked set for litigation in London but discussions between the parties lead to resolution and the bondholders reached agreement on terms that are wrapped up in the acquisition of Vostochny by Sovcombank. This is a great result for the Edwin Coe team in their continuing work for major Russian clients.”

The litigation was handled by the Group and Finance litigation team at Edwin Coe LLP, led by Senior Partner David Greene and Senior Associate Fred Sheppard.