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Starting in the third quarter of last year, United Company Rusal started cancelling shipping contracts for cargoes of bauxite between Australia and Sardinia. On February 4, 2009, Norden, a Danish company with whom Rusal had a long-term contract for vessel delivery of its bauxite, filed suit in the federal US Court in New York, seeking the freeze and attachment of almost $100 million in cash which the company was believed to have on deposit in banks in the New York area. The bank accounts and money were ordered frozen by a court order on February 10. The legal proceedings for contract claims will now be heard in an arbitration court in London.

The freeze order obtained by Norden was the largest secured to date by a creditor against the Rusal group, which is now facing debt claims from more than 70 foreign banks and at least half a dozen Russian banks.

For readers with a special interest in these matters, here is Norden’s US complaint:
Norden A/S v Rusal Trading International Limited

And here is the freeze order that followed:
US court order of attachment against Rusal Trading International Limited

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