EVIC -v- Greater Europe Deep Value II Fund Ltd

The plaintiff applies for leave to amend its Order of Justice so as to include, inter alia , a further interim injunction against the defendant restraining it from publishing in any media a certain letter to which we will come in a moment.

The plaintiff is a special purpose company formed in the Cayman Islands so that clients of Nomura, based in Japan, could invest in the defendant, which is a closed end investment company with substantial real estate holdings in Russia. The plaintiff owns 27% of the Participating Shares in the defendant.

It is the plaintiff's case that it subscribed for the Participating Shares on the basis that the defendant would operate for an investment period of three years, with a wind down period of a further two years. The wind down period was capable of extension with the approval of 75% of the Participating Shareholders. The wind down period will expire on or about 30 th June this year.

In very general terms, the plaintiff claims that the defendant, having failed in an attempt to seek approval for the extension of the wind down period, is in any event proceeding to restructure the scheme so that the assets will be retained for a further period which could last over five years from the end of the wind down period.

In its Order of Justice the plaintiff is therefore seeking an order from the Court for the defendant to be wound up on just and equitable grounds pursuant to Article 155 of the Companies (Jersey) Law 1991 as amended ("the Companies Law") or alternatively, for relief under Articles 141 and 143 on the ground that the defendant's affairs are being conducted in a manner which is unfairly prejudicial to the plaintiff. An interim injunction was granted restraining the defendant from implementing its proposal pending the final hearing of the matter.