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The status of the creditor whose claims are secured by means of a pledge (hereinafter referred to as a “pledge creditor”) in the bankruptcy proceedings is often named as the privileged one. This status provides not only the “privileges” to such a creditor but also imposes a number of serious restrictions in comparison to the status of a regular bankruptcy creditor.
Infralex Associate Yan Bagaev explains intricacies of the pledge creditor position according to Russian Bankruptcy legislation.
In December 2016 LITOKOL S.P.A., the leading manufacturer of construction materials, purchased equity interest in Russian distribution network entity and increased the share of its participation in this Russian holding company that consolidates building products manufacturing facilities. Parties to the transaction also provided each other with options to the participatory interest in the share capital of the distribution network entity that can be exercised until 2020. INFRALEX Corporate Law and M&A practice team led by partner Artem Kukin provided legal advice for the transaction.
Infralex partner Artem Kukin has commented to the website “Pravo.ru” on the case related to restructuring of debt (№ 305-ЭС16-12298). The courts of lower instances considered a debt relief as a gift agreement which is prohibited between commercial organizations. The Russian Supreme Court reversed this decision and explained the difference between gift and restructuring. The Supreme Court referred to the practice of the Higher Arbitrazh (Commercial) Court.
Infralex partner Artem Kukin has taken part in summarizing the activity of the Judicial Chamber on Economic Disputes of the Russian Supreme Court in 2016. The research has been hosted by the website “Pravo.ru”. Almost a third of the cases reached the Supreme Court relates to the bankruptcy, these cases were the most interesting for practice. Artem Kukin believes this is due to the economic situation. At the same time bankruptcy cases reveal the most complicated Civil and Corporate Law problems.
Infralex team whole-hearted congratulates everybody with the upcoming holidays! We wish you the peace, goodness, well-being and legal certainty in the 2017 Year! “That'll go off all right” – this slogan was written on the firm’s cake. These words were the motto of the corporate, these words articulated the Infralex partners Artem Kukin, Alexey Popov, Artur Rokhlin congratulating the colleagues. We believe things will come right.
On the 1st of January’2017 the new Law “On the State Registration of Real Estate” (the Law) will come into force. The Law shall unify the Federal system of the state registration of rights to real estate and the State Real Estate Cadastre. The Law provides in Russia the single system of real estate registration – it was one of the main principles of the Civil Law Development Concept. In perspective the Law shall provide a background for implementation of another significant principle – superficies solo cedit. It means a sole real estate subject including parcel of land end every building upon it. Infralex attorney Irina Zimina analyzed the most substantial provisions of the new Law in the context of the judicial practice (see the attached file).
On the eve of the New Year Infralex traditionally has summed up the outgoing year. Infralex partners Artem Kukin, Alexey Popov and Artur Rokhlin have named the most important events in the legal area. The passing year is not marked by new fundamental laws, substantial precedents, “trials of the century”. The more notable amendments to the Russian Law will come into force on the 1st of January’2017: the new Law “On the State Registration of Real Estate”, the Law on titles to a car-parking space, the new provisions for challenging of companies’ transactions. These laws significantly affect the fundamentals of the economy and the regulation.
Infralex partner Artem Kukin has commented to the website “Pravo.ru” on the bankruptcy case of Vitaly Savvin, a former shareholder of the bank “Peresvet” (№ 305-ЭС16-12960). By considering this case the Russian Supreme Court has revealed the symptoms of artificial debts for controlling of bankruptcy. The Supreme Court stated that the courts must examine the creditor’s claim even though the law provides a simplified procedure to initiate a bankruptcy case against a debtor, without creditor’s obligation to obtain a preliminary court decision for debt recovery. Now such a simplified procedure is getting more and more widespread use. According to Artem Kukin in this situation the Russian Supreme Court is starting to form a system of balances intended to protect from abuse of rights.