Russia's Yukos pins hopes on US court to stop sale of core asset

AFP, December, 2004

MOSCOW (AFP) — Stricken Russian oil giant Yukos was hoping that a US court would grant it bankruptcy protection, scaring off Western banks planning to finance a Russian state-directed takeover of its main asset.

Yukos filed for voluntary bankruptcy on Wednesday in a US district court in Houston, Texas, and petitioned for an injunction to prevent Russian authorities from proceeding with Sunday's fire-sale of Yuganskneftegaz.

Bankruptcy Judge Letitia Clark requested further information and ordered all the parties in the case to show up to a second hearing Thursday.

The battered company, reeling from billions of dollars in tax demands and imprisonment of its owners, said that a ruling in its favour would open the gates to legal action against a syndicate of...