The Yukos Bankruptcy: from Russia with love On December 14, 2004 Yukos Oil Company, the parent of Yukos subsidiaries charged with massive unpaid tax debts in Russia, filed a voluntary Chapter 11 Petition in the Southern District of Texas in Houston. Yukos is the largest oil and gas production company in Russia and among the largest in the world. The Debtor's largest creditor is the nation of Russia, which claims billions in tax debts. A tax sale auctioning the Yukos crown jewel is scheduled to occur in Russia on December 19, 2004. In first day pleadings, the company sought a Bankruptcy Court injunction against Russia to stop the tax sale and a funding injunction against the banks that previously announced that they will provide financing to bidders. The Debtor also seeks enforcement of a "worldwide automatic stay." First day hearings took place in Houston on December 15, 2004. Bases for Bankruptcy Court jurisdiction in the US include: (i) the fact that the company's CFO has a house in Houston, (ii) the fact that representatives of the company have given speeches in Houston, (iii) the fact that the banks that will finance the tax sale have US offices, (iv) the fact that the company intends to list securities on US exchanges and(v) the fact the some of the company's equity interest holders include US citizens. Russia thumbs its nose at the Order fot he Bankruptcy Court Auction to be held despite U.S. ruling; oil giant also cancels shareholders meeting on liquidation. MOSCOW (Reuters) - Russia said on Friday it would go ahead and sell Yuganskneftegaz, the main oil production unit of Yukos, despite a U.S. Bankruptcy Court order seeking to block Sunday's auction for 10-days. "We are selling Yugansk by order of a bailiff and so far we haven't received any order to cancel the auction (on Sunday). Therefore, we are still planning to continue," a spokesman for the Federal Property Fund said. The Houston Bankruptcy Court issued a temporary restraining order on Thursday after Yukos filed for Chapter 11 protection. But Russian Foreign Minister Sergei Lavrov said his nation's courts would have the final say. Yukos is facing ruin from a $27.5 billion back tax claim and the state's plans to sell its main production unit, Yuganskneftegaz, on Sunday to recover the debt. Yukos filed for Bankruptcy protection this week, which together with the shareholders meeting is designed to prevent the state from selling Yugansk. _______________________ U.S. workers losing health benefits according to San Francisco Chronicle: in a related story, residents of San Francisco agree that meat is murder and capitalism is theft. Pundits shocked to hear liberal leaning new reports coming out of the Bay Area ... SOURCE: San Francisco Chronicle 8% of employers interviewed said they had eliminated subsidized health benefits for future retirees this year and an additional 11% said they are likely to do so next year, according to a survey of 333 large firms by the Henry J. Kaiser Family Foundation and the consulting firm Hewitt Associates. Last year only 10% of firms surveyed said they dropped coverage for future retirees. The latest survey, the groups' third annual study of health benefits for former employees, also found that companies are passing on to their retirees an increasing share of medical costs, just as they are doing with benefits for active workers.