Aircraft holding reorganization

Situation

Infralex advised one of the largest holding companies in the Russian aircraft manufacturing sector on the corporate reorganization of the parent company and its subsidiaries with the purpose of improving corporate governance efficiency.

This project involved approximately 30 lawyers from various practice areas of the firm (corporate, real estate, competition, criminal law and litigation), as well as several subcontractors working under the supervision of Infralex. The companies directly involved in the reorganization employ over 20,000 people in total.

Actions taken

Our work involved:

• Developing several versions of the corporate structure of the group after reorganization
• Preparing an action plan for the reorganization
• Legal due diligence of key companies within the holding structure
• Reviewing over 60,000 material agreements and analyzing over 1000 properties (including real estate and IP rights)
• Assessing existing business practices and appraising employment contracts with top management and executives
• Drafting corporate documents and internal regulations for the purpose of the reorganization
• Advising the group on corporate law issues

Result

The reorganization will enable the holding company to be a competitive player in the aircraft manufacturing market. Industry experts estimate that merging its aviation production units will result in saving RUB 50 bn (USD 770 m) annually.