SPB Exchange Denies Bankruptcy Amidst Rumors and Share Price Plunge

On the day the bankruptcy rumors surfaced, SPB Exchange's Moscow-listed shares experienced a significant plunge, plummeting by over 30%.

SPB Exchange, Russia’s second-largest foreign shares trading platform, has vehemently denied rumors of filing for bankruptcy, dispelling concerns raised after arbitration court filings seemed to suggest otherwise.

The exchange had faced recent challenges, including U.S. sanctions that resulted in a temporary suspension of trading activities.

On the day the bankruptcy rumors surfaced, SPB Exchange’s Moscow-listed shares experienced a significant plunge, plummeting by over 30%.

The exchange’s press service promptly addressed the speculation, asserting, “SPB Exchange has not filed documents for bankruptcy,” while emphasizing its stable financial position and the absence of any signs of bankruptcy.

As the day unfolded, SPB Exchange’s shares began to regain some ground, ultimately trading around 11% lower than their previous value by 0833 GMT.

The source of concern originated from two separate case filings, both dated November 24th, in which SPB Exchange appeared as the defendant.

While one case did not specify a claimant, the court described the filings as related to “insolvency (bankruptcy) of organizations and citizens.”

Unfortunately, Reuters could not immediately access the court documents to provide further insight.

Yevgeny Kogan, a professor at Russia’s Higher School of Economics, expressed unease at the lack of a comprehensive explanation from SPB Exchange regarding the court filings.

He suggested that while it could potentially be a technical error, it remained crucial to await firm and transparent statements clarifying the situation.

Despite numerous inquiries from Reuters, SPB Exchange did not offer any additional comments or information.

Earlier in the month, SPB Exchange had announced its engagement of international legal experts to navigate the complex process of transferring shares and payments to investors in the aftermath of the U.S. sanctions.

These sanctions, part of broad measures targeting Russia’s future energy capabilities and sanctions evasion, compelled the exchange to adjust its strategy, focusing more on settlements in Russian rubles.

In summary, SPB Exchange has firmly refuted allegations of bankruptcy, assuring stakeholders of its robust financial position.

Nevertheless, the ambiguity surrounding the court filings has sparked concerns, highlighting the importance of a clear and definitive explanation.

The exchange continues to navigate the challenges posed by U.S. sanctions, seeking to adapt its operations to comply with the new regulatory landscape.