The English High Court has sentenced Sergiy Groza and Volodymyr Naumenko, the former ultimate beneficial owners of Ukrainian import-export business GN Terminal Enterprises (GNT), to 21 months in prison for contempt of court. This ruling underscores the critical importance of adhering to court orders in international business disputes.
The case originated from a US$118 million worldwide freezing order (WFO) imposed on Groza and Naumenko's assets in January 2023, following actions by Madison Pacific Trust Limited on behalf of GNT's secured lenders, Argentem Creek Partners (ACP) and Innovatus Capital Partners. Despite an unsuccessful challenge by the defendants in February 2024, their failure to comply with an additional disclosure order issued in April 2024 led to their sentencing. The order required detailed information about US$97 million in dividends, nominees holding their assets, and the funding of their legal fees.
During the committal hearing on August 30, Groza attended remotely but remained silent, while Naumenko did not appear. Mr. Justice Bryan issued warrants of committal for both, signaling their arrest upon entering the UK. The judge highlighted the defendants' efforts to frustrate the claimant's debt enforcement steps and the ongoing prejudice suffered due to their non-compliance.
This legal action is part of a broader dispute involving loans to GNT Group, including a US$75 million loan from ACP in 2019 and a US$20 million facility from Innovatus in January 2021. Investigations into GNT's failure to meet these financial obligations revealed an alleged asset dissipation scheme.
Daniel Chapman of ACP and Ana Firmato of Innovatus have both emphasized the importance of the court's decision, with Chapman urging entities to sever ties with Groza and Naumenko. The case also ties into ongoing criminal investigations into alleged fraud and asset stripping involving the defendants and their associates.
This sentencing serves as a cautionary tale about the repercussions of disregarding court orders in the global business arena, reinforcing the legal system's role in upholding justice and accountability.
