The Odessa Prosecutor's Office was denied a request to seize 7 million worth of the company's assets

The appellate court denied the prosecutor’s office’s request to freeze the funds and property of an Odessa-based company in a case involving a debt of more than 7.1 million hryvnias. The judges agreed with the trial court’s findings that there was no evidence of a real risk that the company would conceal its assets.

This is stated in the ruling of the Southwestern Commercial Court of Appeals.

During the appeal proceedings, representatives of the company CITY-M BUSINESS LLC objected to the seizure. They pointed out that they own an administrative building worth over 89 million hryvnias, which confirms the company’s solvency. It was also noted that freezing the accounts would lead to a halt in operations and financial losses, and would make it impossible to pay salaries and taxes.

The appellate panel confirmed that the amount of the claims or the defendant’s ability to dispose of its property does not, in and of itself, constitute grounds for seizure. 

A representative of the Khadzhibey District Prosecutor’s Office in Odesa filed the lawsuit on behalf of the city council. Prosecutors are seeking to recover, jointly and severally fromCITY-M BUSINESS LLC and SPIRIUS LLC, 7.13 million hryvnias in funds unjustifiably withheld from contributions toward the city’s infrastructure development. They are also seeking to recover accrued interest and inflation-related losses.

In conjunction with the lawsuit, the prosecutor’s office filed a motion to freeze the funds and real estate of “CITY-M BUSINESS” LLC. However, the Odesa Regional Commercial Court denied the request for provisional relief. This prompted the prosecutors to appeal to the Southwestern Commercial Court of Appeals.

Юлія Калабайда