Restructuring and bankruptcy

Protecting the interests of head of a large strategic enterprise from the consequences that would have occurred if it were declared bankrupt

By 12.11.2018 No Comments

Lawyers of our company revealed procedural violations committed by the court when considering the report of the financial manager on the results of the procedure for restructuring the debts of the Client. As a result of consideration of the appeal, it was made possible to overrule the decision on recognition of the Client as bankrupt  and  enable the changing of the consideration of the case according to the rules of first instance. In the process of reviewing the issue of the financial manager’s report on the results of the debt restructuring procedure, the acquisition of rights (claims) from  the main debtor was completed and the bankruptcy proceedings were terminated due to the fact that the assignee’s creditor’s legal successor abandoned the claims against the debtor.

Thus, the lawyers of our company were able to fully defend the client – the head of a large strategic enterprise from the consequences that would have occurred if he were declared bankrupt and, consequently, from efforts to remove him from the management of his company.

The value of this proceeding for the client cannot be overestimated, given the fact that the legal norms of the bankruptcy law suggest the following negative consequences for a citizen who is declared bankrupt:

– the inability to hold management positions;

– inability to accept credit obligations.

It is worth noting that these circumstances occur in any case at the completion or termination of the procedure for selling the property of a citizen, regardless of the reasons for termination of the proceedings, even if the reason for termination was full repayment of creditors’ claims.