Çukurova eyes to take Turkcell stakes back

LONDON - Reuters

Turkey’s Çukurova accused late July 23 Russian investment firm Altimo of mounting a cynical legal campaign in New York to try to stop it from recovering a controlling stake in mobile phone operator Turkcell under the terms set by Britain’s Privy Council court.

Çukurova is applying to the Privy Council for more time to pay $1.57 billion to Altimo to recover the stake. Altimo opposes the extension of the deadline, currently set for Sept. 9.

After years of litigation, the Privy Council ruled on Jan. 30 that Çukurova should be given an opportunity to pay back the loan and recover the shares. It then set the detailed terms for that to happen on July 9.Lawyers for Çukurova told the Privy Council on Tuesday the firm needed more time because it was appealing against an injunction obtained on April 18 by Altimo from a New York District Court prohibiting Çukurova from putting up the Turkcell stake as collateral in any new loan.

Çukurova is also appealing against another injunction, obtained by Altimo from the New York court on July 12, barring Altimo’s own bank, Deutsche Bank, from accepting any payment from Çukurova in relation to the recovery of the Turkcell stake.

Çukurova’s appeals are due to be heard by the Second Circuit of the U.S. Court of Appeal on Aug. 22 and judgment will come at a later date. The Turkish firm wants the Privy Council to extend the deadline for producing the $1.57 billion to 60 days after that U.S. appeal judgment.