Administration of one of the municipalities misled management of Rightmark Group client, and forced the company management to approve the terms, knowingly unfavourable for the company, setting the amount of lease payment for the land designated for construction. After the new company management refused to pay the unreasonable land rent, the municipal administration initiated bankruptcy in order to seize the company property.
The insolvency receiver appointed by the administration acted solely in its interests: failed to act, without attempting to appeal against an illegal judgment delivered in favour of the administration, and created unlawful conditions for unreasonable increase in the amount of current payments in favour of the administration.
Thanks to efforts of our lawyers, the insolvency receiver was dismissed, the amount of losses incurred by the debtor’s creditors, except for the administration, was recovered from him. The new insolvency receiver redressed the balance of interests. Negotiations between our lawyers and the insolvency receiver resulted in conclusion of a settlement agreement which terms and conditions served the best interests of all the debtor’s creditors and the debtor itself.