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    YUKOS INSISTS ON RECOGNITION OF ITS BANKRUPTCY BY US COURT

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    WASHINGTON, March 1 (RIA Novosti, Arkady Orlov) - On Tuesday judge of the federal bankruptcy court of the southern district of Texas state in Houston Letitia Clark will hear out Yukos' petition on repeat consideration of its application for bankruptcy in that court. RIA Novosti was told this by judge Clark's assistant Maria Rodriguez according to whom the meeting on a new petition of Yukos will begin in Houston in the second half of the day (at 23.30 Moscow time).

    In its 11-page petition Yukos insists on new consideration of its bankruptcy application, and asks to do so in an accelerated manner.

    It is perfectly clear that it will be better for Yukos, our shareholders and creditors, and our personnel if we can continue our bankruptcy case in a US court, the written statement by chairman of the Yukos Board Steven Theede reads.

    In Yukos' opinion, refusal to consider the bankruptcy application will do very big damage to the company's property, and for this reason judge Clark must return to considering the Yukos case again.

    The petition also contains a request to judicially prohibit any further operations with the Yukos assets.

    Last week, on February 24, judge Clark took a decision to satisfy the petition of Deutsche Bank on discontinuing the consideration of the Yukos case in the US court.

    A sizeable part of Yukos' business and financial activity continues to take place in Russia. Such activity requires continued participation of the Russian government, the decision of judge Clark points out.

    In her written ruling, which has taken more than 30 pages, judge Clark also stresses that in their practice of considering bankruptcy cases the courts in the USA have never dealt with the questions of bankruptcy of such a big foreign company.

    None of these precedents can be extended to the corporation, which holds such a central place in the economy of the country where the corporation was established, judge Clark's decision points out.

    Yukos company filed an action in the bankruptcy court in Houston in December 2004, but this suit was contested by Deutsche Bank which stated that the case is within the Russian court's jurisdiction.

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