Cleary Gottlieb Wins Significant Victory for Maksat Arip in London High Court

March 25, 2015

Cleary Gottlieb successfully represented Maksat Arip, a leading Kazakh businessman who has over 15 years’ senior level experience working in the Russia and CIS region and founder of London listed Exillon Energy plc, in London High Court proceedings brought by the Kazakh bank Alliance Bank.

Alliance Bank argued that Mr Arip and others had defrauded it by causing companies under their control to obtain loans from the bank with no intention of repaying them, and that they had constructed a scheme to deprive the bank of valuable assets that should have been pledged as security for the loans. Alliance Bank obtained a freezing order against Mr Arip at a without notice hearing in November 2014 and sought damages of almost $300 million.

In a judgment published on March 18, 2015, the High Court in London dismissed Alliance Bank’s claim in its entirety, finding that it had no prospect of success. The Court found that Alliance Bank had failed to produce highly material documents at the without notice hearing, and found that critical documents were eventually produced to the Court only as a result of demands made by Cleary Gottlieb on Mr Arip’s behalf. The Court found that those documents made it clear that Alliance Bank’s case had no prospect of succeeding.

Mr Arip has been awarded indemnity costs and a substantial payment on account of those costs. Alliance Bank’s application for permission to appeal was refused by the judge.

This is the second litigation victory Cleary Gottlieb has secured for Mr Arip in 2015. In January, the firm represented Mr Arip in his successful application to dismiss a new $300 million claim brought against him by Kazakhstan Kagazy. Cleary Gottlieb continues to represent Mr Arip in his defence of further claims brought by Kazakhstan Kagazy.