Bankruptcy

In-depth knowledge of law and extensive managerial experience

Our team advises on the full spectrum of bankruptcy projects, including litigation, debt restructuring, bidding assistance, asset tracing in Russia and abroad.

Directions

Key services:

representing clients in bankruptcy cases in the arbitrazh court and in other bankruptcy proceedings
negotiations with creditors, debtor and potential buyers of distressed assets
inclusion of the clients’ claims in the register of the creditors’ claims
counteraction to inclusion in the register of fictitious monetary claims
participation in meetings and committees of creditors, appeal of the actions of the insolvency manager
challenging of suspicious transactions, including transactions on asset withdrawal
holding controlling persons liable
challenging actions of the insolvency managers and holding them liable

Comprehensive support for bankruptcy proceedings

PB Legal | Panin, Bayramkulov & Partners Team:

represents the interests of creditors, largest Russian and international banks in bankruptcy cases
represents the interests of creditors in cross-border proceedings in Russia and abroad, including the UK, France, Monaco, Cyprus, Germany, the Czech Republic, BVI and other jurisdictions
acts as experts in Russian law, including issues of bankruptcy law in foreign state courts and international commercial arbitration courts
takes part in meetings of the expert council on improving the legislation on insolvency (bankruptcy) at the Ministry of Economic Development of Russia

Asset tracing (Forensic)

PB Legal | Panin, Bayramkulov & Partners Team:

assists in obtaining orders of foreign courts for disclosure of suspicious transactions and beneficiaries of companies as well as the seizure of foreign assets
works with leading foreign private investigators (detectives) who help to track stolen assets, to find persons involved in theft and their properties around the world
presents evidence obtained as a result of investigations in foreign and Russian courts
analyzes databases and accounting documents together with auditors specializing in financial investigations

Bidding for the sale of property of the debtor

PB Legal | Panin, Bayramkulov & Partners Team:

advises creditors on the procedure of the sale of pledged property
represents the interests of bidders
challenges bidding results
interacts with the electronic platforms

Debt restructuring

Prevention of bankruptcy as a result of a compromise between the debtor and creditors.

PB Legal | Panin, Bayramkulov & Partners Team:

participates in negotiations both on the side of the creditor and on the side of the debtor in order to conclude a transaction on conditions most favorable for the client
structures agreements in relation to assets located in different countries under laws of different jurisdictions, including English law
monitors performance by the parties of their obligations aimed at the settlement of the dispute

Projects

Representing the fund with state participation registered in the Yamalo-Nenets Autonomous District in bankruptcy proceedings against a number of developers

The client entered into many equity participation agreements in the housing construction with developers, in respect of which bankruptcy proceedings were subsequently initiated.

The client entered into many equity participation agreements in the housing construction with developers, in respect of which bankruptcy proceedings were subsequently initiated. Our team has developed a strategy for compensation of the damages to the fund, particularly, by: bringing former directors of developers to subsidiary liability; recovery of damages from the former management of the fund.

In the framework of bankruptcy cases, the managers of the developers used one type of scheme. On the eve of the developers' bankruptcy, management of the companies was transferred from the directors to the management companies. As a result, the bankruptcy administrators did not receive from the former managers most of the documentation regarding the developers, which made forming of the bankruptcy estate impossible.

In relation to one of the developers, we have already managed to prove that it is the former director who is responsible for the non-transfer of the debtor's documents. The court brought the former director to subsidiary liability for the obligations of the developer.

Since, under the agreements with developers, former managers of the fund made payments to developers for uncompleted stages of construction work, we also initiated a litigation to recover damages caused to the fund by unreasonable actions of its former management for improper acceptance of construction stages at sites.

This project has an important task to minimize the damage caused to the fund by unfair developers, and to protect the property interests of the fund, which are backed by the interests of citizens awaiting housing in unfinished construction sites.

Protecting the interests of a large investment company in a dispute over bringing our client to subsidiary liability in the amount of RUB 20 billion.

The court proceedings took place in the bankruptcy proceedings of the company (the debtor) incorporated to implement an investment project in Yamal region. Our client owns 25% of shares in the debtor.

At the end of 2019, the largest creditor initiated a dispute on bringing the shareholders and managers of the debtor to subsidiary liability in the amount of about RUB 20 billion. Our task was to protect the Client’s interest and prove that the Client is not a controlling person of the debtor, and the plaintiff missed the limitation period to claim. In addition, the PB Legal | Panin, Bayramkulov & Partners team was able to prove that the plaintiff did not provide sufficient grounds to hold the client liable for the failure to file a bankruptcy petition of the debtor, as well as for the impossibility of fully repaying debts.

As a result, the Arbitrazh Court of the Yamalo-Nenets Autonomous Okrug dismissed the claim against our Client.

Representing a large construction company acting as a creditor in a bankruptcy case

Our client is a leading construction company for transport infrastructure and the largest Russian bridge construction company.
The PB Legal team represents a creditor in the bankruptcy case of a construction company that was performing a government contract for the construction of a railway section of the bridge.

Our client is a leading construction company for transport infrastructure and the largest Russian bridge construction company.

The PB Legal | Panin, Bayramkulov & Partners team represents a creditor in the bankruptcy case of a construction company that was performing a government contract for the construction of a railway section of the bridge. Our goal is to include the creditor’s claims in the list of creditors, as well as, by challenging the debtor's transactions and bringing the management to subsidiary liability, to replenish the debtor's assets. The sale of the debtor's property will contribute to real and fair satisfaction of the client’s and other creditors’ claims, key players in the construction industry.

Representing the client’s interests in the personal bankruptcy of a wealthy Bashkir businessman

The PB Legal | Panin, Bayramkulov & Partners team managed to prevent persons affiliated with the debtor from taking control over bankruptcy of the debtor and we prevented dilution of the bank’s share by entering into the register of the claims of the debtor’s creditors.

We were able to find evidence of affiliation with debtors not only of Russian creditors, but also of creditors registered under English law in various offshore jurisdictions (British Virgin Islands, Saint Kitts and Nevis).

Preparing a legal opinion, forming a legal position and a strategy for a large Russian telecommunications company on the risks of challenging a deal changing the purchase price of a share in the company.

The PB Legal team was hired to analyze the terms of the supplementary agreement on the change in the purchase price of a share in the company. The task was complicated by the fact that the special purpose agreement of the share was structured according to English law, whereas the bankruptcy proceeding was initiated against the seller.

The PB Legal | Panin, Bayramkulov & Partners team was hired to analyze the terms of the supplementary agreement on the change in the purchase price of a share in the company. The task was complicated by the fact that the special purpose agreement of the share was structured according to English law, whereas the bankruptcy proceeding was initiated against the seller. We worked in cooperation with English law on the legal opinion.

Our team analyzed the grounds for challenging the transaction in the framework of the seller’s bankruptcy case in Russia, and also proposed a strategy to minimize the detected risks.

Representing a bank, its subsidiary as majority and minority creditors in one of the largest bankruptcy proceedings in the Krasnoyarsk Region

We represented clients in the bankruptcy case of Russia's large wood company estimated asRUB 2.5 billion before the bankruptcy.

We represented clients in the bankruptcy case of Russia's large wood company estimated as RUB 2.5 billion before the bankruptcy. Our clients in the bankruptcy case were the country’s largest bank of non-core assets and its subsidiary. When our Clients – the majority creditors of the bankrupt company, to whom the debt was transferred from the initial creditors-were included in the register of claims, there was a question about their affiliation with the debtor. This circumstance could lead to the inclusion of our Clients’ claims out of the register of creditors' claims with the corresponding consequences, including the inability to vote at creditors' meetings. The situation was complicated by the complete lack of case law on the dispute. There was also a uniform negative case law on similar disputes, in which the courts were guided by the explanations of the Supreme Court of the Russian Federation. Our team managed to develop an effective strategy and legal position that allows us to justify the uniqueness of the dispute due to the "forced" affiliation of the creditor and the debtor, which arose as a result of the reorganization of banks. The case continues to be considered and will be of great importance for the resolution of similar disputes.

Preparation and filing of a cassation appeal to the Supreme Court of the Russian Federation against judicial acts by which the client’s claims were subordinated in the register of the creditors’ claims

The PB Legal team prepared the claim for a large businessman specializing in agricultural activities in the register of creditors ' claims in the bankruptcy case of the company-owner of an important production facility in the Bryansk region - a large potato processing plant.

The PB Legal | Panin, Bayramkulov & Partners team prepared the claim for a large businessman specializing in agricultural activities in the register of creditors ' claims in the bankruptcy case of the company-owner of an important production facility in the Bryansk region - a large potato processing plant.

The client's claims under the loan agreement were recognized as justified by the lower courts, but they were lowered in the register of the creditors’ claims. The PB Legal | Panin, Bayramkulov & Partners team prepared and filed a cassation appeal to the Supreme Court of the Russian Federation, where analyzed in detail the issue of subordination of claims based on the latest case law, including the Review of the Supreme Court on subordination.

Representing the client in the case of challenging the transaction in the amount of about 1.7 billion rubles

Our client is a large company created by the initiative of the President of the Russian Federation. Its aim is to develop investment projects in the regions of the Russian Federation.
The PB Legal team represents the client in a dispute initiated against its subsidiary.

Our client is a large company created by the initiative of the President of the Russian Federation. Its aim is to develop investment projects in the regions of the Russian Federation.

The PB Legal | Panin, Bayramkulov & Partners team represents the client in a dispute initiated against its subsidiary. The external manager in the framework of the bankruptcy case unreasonably disputes the operations for the repayment of debt in favor of the client's subsidiary under loan agreements in the amount of about 1.7 billion rubles.

Our goal is to prevent the loan repayment from being challenged. As part of the work on the project, the PB Legal | Panin, Bayramkulov & Partners team developed a strategy for protecting the client. In particular, it was established that there were no creditors who could have been harmed as a result of the repayment of loans. Moreover, it was also established that the loans were refinanced by a new participant of the debtor, therefore the situation of the debtor did not deteriorate, but, on the contrary, improved.

As a result, we protected the client’s interests in the court of first instance and prevented the invalidation of the loan repayment operations.

Advising a large investment group on the structuring of a transaction related to the acquisition of a real estate object from a company whose majority participant was in bankruptcy.

Our client is the oldest investment group in Russia, one of the founders of the Moscow Stock Exchange and the National Association of Stock Market Participants (NAUFOR).

Our team presented the client with three options for structuring the transaction, indicating the risks of each of them, as well as noting the most preferred action plan for the purchase of the object. For example, our lawyers have provided options for buying out the premises with the termination of the bankruptcy procedure of the majority participant, without the termination of such a procedure, as well as by acquiring corporate control over the company by the client.

Thanks to the creative approach of PB Legal | Panin, Bayramkulov & Partners lawyers, the client managed to buy out a large building and avoid the potential invalidation of the purchase and sale transaction, the return of the property to the debtor's bankruptcy estate and related lawsuits.

Representing Russian second-largest investment company in a dispute arising out of a trust management agreement against a non-state pension fund.

Our opponent went bankrupt and its interests were represented by the Deposit Insurance Agency.

Our opponent went bankrupt and its interests were represented by the Deposit Insurance Agency. Despite the fact that our client's position was contrary to the existing case law, including the cases of the Supreme Court of the Russian Federation, we convinced the court that the case is unique which allowed us to convince the court to depart from the Russian case law and rule in favor of our client. We proved that the investment company properly fulfilled its obligations under the asset trust management agreement by obtaining a legal expertise, as a result of which the court refused to satisfy the opponent's claims in full.

Representing our client’s interests in a separate dispute in a bankruptcy of an airline company, the largest bankruptcy in Russian history

We advised the former directors of the airline's offshore subsidiary on the likelihood of them being brought to subsidiary liability. In order to prevent the risk, we presented to the court a chain of complex financial transactions, including REPO and leasing transactions. We also provided an appropriate legal analysis of such transactions.

Representing a theme park company and its beneficiaries’ interests in order to prevent them from being declared bankrupt

We managed to prevent the bankruptcy of the company and the beneficiary by developing an effective strategy of interaction with the creditor, including negotiation, prompt actions in Russian courts and a conclusion of the and a settlement agreement on favorable terms. Settlement agreement provided for a restructuring of the client’s debt which reduced the debt burden by more than 65 percent. We represented the client’s interests in a number of proceedings in Russian courts of general jurisdiction. In particular, we successfully challenged the results of the auction for the sale of our client’s property. Due to our success in court proceedings our client gained a strong position in negotiations with creditors. PB Legal | Panin, Bayramkulov & Partners team represented the client in settlement negotiations and managed to conclude an agreement on extremely favorable terms for the client.

Preparation of a legal opinion on the assessment of risks in the application of the creditor’s claims in the debtor’s bankruptcy case.

Our client is a large company established on the initiative of the President of the Russian Federation, which is engaged in the development of investment projects in the regions of the Russian Federation. As a result of the revision of the case under newly discovered circumstances, the client had claims against the debtor.

The PB Legal team prepared a legal opinion assessing the client's risks related to the application claims in the debtor's bankruptcy case, as well as the prospects of satisfying the said claims. The legal opinion also analyzed the procedure for reversing a judgment in a situation where a debtor is declared bankrupt. Based on the results of the analysis, the client was given recommendations in connection with the statement of claims in the debtor's bankruptcy case.

Representing the Client in a contractor bankruptcy case.

Our Client is the largest agro-industrial enterprise in the Tver region.
The beneficiaries of the contractor initiated a controlled bankruptcy in order to put pressure on the Client by filing baseless claims.

As part of the project PB Legal lawyers:

Revoked the court decision on initiation of simplified controlled bankruptcy procedure
Included the Client's claims in the creditor's register for more than RUB 750 million.
Supported disputes on recovery of over RUB 500 million from the Client.

Comprehensive legal support of the Client’s interests in bankruptcy proceedings of a major contractor.

Our Client is a creditor of a construction company that is currently under bankruptcy proceedings. Works amounting to more than RUB 3 billion were not fulfilled to our Client.
The Client needed legal assistance in conducting an effective bankruptcy procedure of the debtor company to ensure the maximisation of the Client's claims.

Our Client is a creditor of a construction company that is currently under bankruptcy proceedings. Works amounting to more than RUB 3 billion were not fulfilled to our Client.

The Client needed legal assistance in conducting an effective bankruptcy procedure of the debtor company to ensure the maximisation of the Client's claims. In the monitoring procedure, creditors filed claims totalling more than RUB 7 billion.

The client is also interested in termination of all contractual relations with the unconscientious contractor, with transfer of all rights and obligations under the contract to the new contractor at the same time.

The PB Legal team represents the Client's interests by (1) supporting the inclusion of his claims in the creditor's register, (2) preparing objections to the claims of other creditors, as well as (3) participating in the disputes with the debtor outside the bankruptcy case, which may help to enlarge the bankruptcy assets.