The leasing company Brunswick Rail Leasing and metallurgical holding OJSC Mechel have concluded an amicable settlement revising a lease on mutually beneficial terms
On 5 October 2009, Brunswick Rail Leasing (BRL) the leader on the Russian market for leasing rolling stock, concluded an amicable settlement with the metallurgical holding OJSC Mechel.
Let us recall that, in the spring of 2009, BRL filed a claim against OJSCMechel with the International Commercial Arbitration Court (ICAC) under the Chamber of Commerce and Industry of the Russian Federation seeking to terminate the lease agreement and recover lease payments and losses incurred owing to enforced termination of the lease and totalling about $21 mln.
Owing to the financial and economic crisis in Russia since the second half of 2008, the old terms and conditions of previously concluded agreements proved to be unfavourable for rolling stock operators. As a result, buyers started lobbying for amendment of contractual terms, in particular, a cut in price and volume.
An amicable settlement is the most efficient response during the crisis, helping businesses to survive and indicating that both parties have reached a compromise on all matters of dispute.
The Legal Director of Brunswick Rail Leasing, Elena Naumova, has, in turn, expressed her gratitude for support during the litigation: “We were very pleased to work with your team. The professionalism demonstrated cannot but be admired. A job well done!”
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