Practices

In the process of liquidation of a legal entity being a part of the group of companies of one of the largest developers in St. Petersburg Rightmark Group lawyers revealed outstanding accounts payable and decided on the need to liquidate the company in a manner laid down by the bankruptcy law. Rightmark Group lawyers acted in the best interests of both liquidated debtor and its creditors, facilitated significant acceleration of judicial and administrative procedures aimed at the debtor liquidation.

LENOBLIMUSHCHESTVO brought an action against LOGUP Krasny Pakhar, represented by Rightmark Group, for termination of a right to permanent (perpetual) use of a land plot with an area of over 20,000 ha in Boksitogorsky district of Leningrad Oblast. According to the Plaintiff, the Defendant was to have been deprived of this right, as the land plot was not used for more than three years, starting from 2007. In proceedings before the first instance arbitration court the lawyers proved the fact of partial use of the land plot as intended, which was also recorded in a certificate of audit of compliance with the land legislation.
However, the main reason for claim dismissal was a major violation by public law enforcement bodies of the procedure for forced deprivation of the defendant right to permanent (perpetual) use. In the case under consideration, a notice was issued prior to accumulation of facts, and a penalty was charged only a year after, in fact, as a sanction for another offence. Under such circumstances, the court had no reason to satisfy the asserted claims. The arbitration court of appeal upheld findings of the first instance court. The plaintiff filed a cassation appeal from the trial court and a court of appeal ruling, but the court of cassation upheld the ruling. 

After receiving, by false pretences, a short term loan from the client amounting to several hundred million roubles through a dummy company, its owner attempted to declare fictitious bankruptcy of the company and strip the assets (real estate) in order not to return the received amount of money. The debtor bankruptcy proceedings lasted over three years due to lots of abuses on the part of the debtor representatives, sole member and a person acting as the sole executive body. However, Rightmark Group lawyers succeeded in preventing a number of attempts to include in the list of creditors’ claims fictitious claims of creditors affiliated with the debtor and the sole member of the debtor, as well as stripping of the debtor's assets, ensured lawful bidding for sale of the debtor property and satisfaction of claims of the debtor’s creditors.

Despite the small amount of claims of the client (engineering company) and rather hostile, formal position of an insolvency receiver, Rightmark Group lawyers ensured observance of the client rights in bankruptcy proceedings: the customer claims were included in the list of the debtor's creditors in full, despite many objections by the insolvency receiver. This allowed to protect the client interests in such a massive case, where top priority was given to interests of major market players.

During bankruptcy of a company, one of the major St. Petersburg developers, persons controlling the debtor together with one of the two largest creditors of the debtor attempted stripping of the only asset — a shopping mall under construction. In order to serve the best interests of the client, it was decided to form a union between Rightmark Group lawyers with great experience and extensive knowledge in the area of bankruptcy, representing the client interests, and a bank — the debtor’s creditor with more than 50% of the total number of votes. This strategic decision allowed to prevent asset stripping, and protect interests of not only major creditors, but also those with less than 10% of the total votes in the list of the debtor’s creditors: property was returned to the bankruptcy estate and sold in an auction, claims of all creditors were satisfied. 

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.