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Yukos creditors vote to recognize company bankrupt

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A meeting of creditors of Yukos Oil Company [RTS: YUKO] voted Tuesday to recognize the company bankrupt and start liquidation procedures.
MOSCOW, July 25 (RIA Novosti) - A meeting of creditors of Yukos Oil Company [RTS: YUKO] voted Tuesday to recognize the company bankrupt and start liquidation procedures.

A total of 23 out 24 creditors on the company's register of creditors participated in the meeting, with 93.87% of them voting for and 5.6% against the decision.

The liquidation would end years of legal proceedings against Yukos that have saddled the company with billions of U.S. dollars in back taxes and the creditors will now apply to an arbitration court with the recommendation.

The Yukos creditors earlier voted against placing the debtor under external administration and against the company management's financial restructuring plan.

Eduard Rebgun, the Yukos temporary manager, said the company's proceeds after the sale of assets and the payment of back-taxes would not even cover the crude producer's court-recognized debts.

"The company's financial restructuring is impossible and, therefore, we recommend the company to initiate liquidation procedures," Rebgun said.

Rebgun valuated the company's property and assets at 581.33 billion rubles (about $21.5 billion) but said the company's proceeds would total 417.15 billion rubles (about $15.4 billion) after the assets sale and tax payments.

The company's liabilities recognized by court totaled 491.58 billion rubles (about $18.2 billion), Rebgun said.

Yukos chief executive Steven Theede resigned July 20 just before the original creditors' meeting, which was then adjourned until today.

U.S. national Theede, 54, was supposed to present a plan for the company's financial recovery via video link-up at a conference with the company's board, but refused to join a process that he said would be attended by people intent on "destroying" what was left of Yukos.

Today's decision dragged down the company's stock 9.7% on the Russian Trading System (RTS) stock market and 12% on the Moscow InterBank Currency Exchange (MICEX).

Yukos shares are currently being traded at $0.72 per share on the RTS and at 19.2 rubles (about $0.71) at the MICEX.

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