Kumtor Gold: Court holds Kyrgyzstan in contempt over stay violation

By Sarah Lizee

Olympia, Wash., July 21 – The court overseeing Kumtor Gold Co. CJSC’s Chapter 11 bankruptcy case held the Kyrgyz Republic in contempt for violating the case’s automatic stay, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Kyrgyzstan had started a July court proceeding relating to tax and environmental claims against the company in the Kyrgyz Republic. Kumtor filed an emergency motion to enforce the automatic stay in its Chapter 11 case, and the Kyrgyz Republic objected to the motion.

“From the first hearing in these proceedings, the Kyrgyz government has stated that this court does not have jurisdiction over this matter and that these proceedings were not properly authorized,” the company said in a reply to the government’s objection.

“Yet, six weeks have passed, and the Kyrgyz government has not filed any motion to challenge these proceedings.

“Instead, they have gone to their own courts on an ex parte basis seeking an ex post declaration that the proceedings are null and void.”

Kumtor said the violations of the automatic stay were “designed to intimidate” its litigation adversaries and their lawyers.

Bishkek, Kyrgyzstan-based Kumtor Gold is owned by Toronto-based Centerra Gold, a mining and exploration company. The Chapter 11 case number of Kumtor Gold is 21-11051. It filed bankruptcy on May 31.

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