CME to Appeal Ukraine Court Decision on Studio 1+1 Stake

HAMILTON, August 16:
Central European Media Enterprises (CME) will appeal a Ukrainian court ruling
issued today that says that local businessman Igor Kolomoisky is entitled to a
70-percent stake in Studio 1+1, in which CME currently holds a 30-percent stake.

CME said it has a
“longstanding binding agreement” that entitles it to a 60 percent stake in
Studio 1+1. “Alexander Rodnyansky is effectively a custodian of our interest
until a previously agreed restructuring of the ownership of Studio 1+1 to
reflect these ownership interests has been completed,” said CME CEO Michael
Garin. “Igor Kolomoisky has acknowledged this right in the course of the
proceedings in Kiev. The 40 percent interest in Studio 1+1 is not the property
of CME and we cannot compel the sale or transfer of it. Any transfer, however,
can only be by legal means. Accordingly, we do not believe that any person can
have a legitimate claim to a 70 percent interest in Studio 1+1. We are
confident the government is committed to ensuring the interests of foreign
investors in the Ukraine are protected."