Authorities said the Amadea belonged to sanctioned Russian billionaire Suleiman Kerimov, and also seized the boat – but the businessman says it is not his property
A luxury £ 240 million superyacht will be performed for a reduced price at an auction – but it comes with a catch.
The Amadea was seized by the US Department of Justice in 2022 after the US authorities said it belonged to sanctioned Russian billionaire Suleiman Kerimov.
He disputes this and colleague -Russian businessman Eduard Khudainatov, who is not punished, insists that he is the owner. Mr. Khudainatov has submitted several legal claims to reclaim the yacht.
But they have not been successful so far and it is being sold in a sealed bidding auction that will be closed on Wednesday (September 10). The legal team of Mr. Khudainatov continues to fight the case and say that they will also try to regain the ownership of the boat through foreign courts if it ever leaves the states.
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This has created a strange situation that Adam Ford, Mr. Khudainatov’s lawyer, claims that the yacht will not lead to no “fair market price” attracted.
This is “because ownership can be challenged for courts outside the United States, so that buyers are exposed to years of expensive, uncertain lawsuits,” he added.
According to the official auction website, bidders must place £ 7.45 million in Escrow and evidence of at least £ 370 million to be eligible for the auction.
Despite the sale that continues, legal experts have warned that potential buyers can be deterred by the fear that the 106 -meter yacht – which has currently entered San Diego, California – can be seized if it leaves our kisses.
Paul Stephan, a professor of law at the University of Virginia, said that it would be “main risk” if other areas of law recognize the American court judgment.
He has previously branded the boat – which can accommodate 16 guests and costs around £ 450,000 a month to retain – a ‘floating lawsuit’.
He added: “A creative lawyer could come up with arguments that can succeed, even in a strong legal scheme such as the United Kingdom: (1) the procedure for civil declaration proceedings meets the standards of a fair trial? (2) Did the American court refused the nominal owner’s day in the court?
“Countries that are not inclined to accept the American sanction regime and have less independent courts are perhaps more inclined to reject the American judgment. Good luck that she will sail to Hong Kong or Macao, for example.”
He explained that the foreign courts will accept the American judgment “if it matches their values, assessment of facts, etc., but no different. In any case, the risk would add to the transaction and at least make it more expensive, if not unreachable,” he added.
And even if the boat is never confiscated, a new owner “will be put off to sail somewhere, or allows the boat to travel to, where there is a threat of a legal dispute about the title,” he said.
Publicity around his property can also lead to extra control of his new buyer, even if it is purchased via Proxy, he added.
Nevertheless, Mr Stephan said that it might still be a seller.
“An entrepreneur with a hunger by risk can find a price that makes the gamble worthwhile,” he added.
“From the perspective of the government, they (1) want to be seen as doing something and (2) unload the carrying costs that are considerable.”
In a statement, Mr. Ford of the law firm Ford, O’Brien Landy,: “We are aware that the United States is planning to auction the M/Y Amadea – ownership that belongs to Mr. Khudainatov. The sale is incorrect and prematurely; we retain the title and are actively attractive to the rule of the rule of the rule of the rule.
“If our appeal succeeds, the government must repay the full value of the ship. We doubt whether it will attract every rational buyer at a fair market price, because ownership can be challenged for courts outside the United States, allowing buyers to be exposed to years of precious, uncertain lawsuits.
“Recent judgments in the European and Caribbean courts have already punished buyers who have acquired assets through illegal epileptic seizures, including super yachts in Russia. Prospective bidders must carefully study those precedents.
“If the government simply penetrates the increasing costs that it imposes on the American taxpayer, we will pursue the sales proceeds and each deficit of the real market value, as soon as we have the upper hand in court.”
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