Yesterday, a session of the Arbitration Court of Moscow took place regarding the bankruptcy case of Euroclear. Representatives of the Central Bank and the National Settlement Depository not only opposed the initiation of the procedure but also specifically noted the following:

(1) The bankruptcy of Euroclear is unfounded, as Euroclear has assets.

(2) However, these assets are held in special accounts of types "C" and "I", which makes it impossible to satisfy creditors' claims from these assets.

A brief overview of the positions is provided in the legal practice alert from VERBA LEGAL.