Russian tycoon’s $10M electrifying win over General Electric Company (NYSE:GE)
Alexander Lebedev, the Russian tycoon won an astounding $10M in damages against General Electric Company (NYSE:GE), the global mammoth. GE’s bill is set to touch $17M with the addition of costs and interest. The case revolved around 7 airbus aircraft that are owned by Aplstream, Lebedev’s company. These aircraft has been leased to Blue Wings, a German airline. Eventually Blue Wings went bankrupt in 2009.
A GE subsidiary that had a mortgage over these aircraft ended up seizing them. In addition, they revamped the aircraft for an amount of £32M and auctioned them. Later on in the day, another GE subsidiary bought the aircraft. Lebedev’s company put forth the argument that they had not received enough of its interest in the aircraft since the GE subsidiary had overspent on the revamp and that eventually, the aircraft had been sold-off too cheaply.
Interestingly, the London High Court Judge ruled that a “conspiracy” of sorts had been cooking between the 2 General Electric Company subsidiaries, against Aplstream.
The Lebedev persona
Just last month, Alexander Lebedev missed a jail sentence in Russia by whiskers. An altercation had ensued between Segei Polonsky, a rival businessman and Lebedev. The latter ended-up punching Polonsky. Though he did not win the case, he had to serve 150 hrs of community service. Soon after, the country’s authorities reversed their claim that Lebedev’s actions had been motivated by political hatred.
This particular charge could have easily resulted in a custodial sentence. Several people believed that this allegation has distinctly political overtures since Lebedev had certain interest in a Russian paper that holds a very critical view of Putin’s government. That however, is a different story and General Electric Company (NYSE:GE) will have to shell out the damages that have been awarded to the Russian.