Commentary by Olga Pleshanova on PRObankrotstvo

How to calculate compensation for secured creditors in developer's bankruptcy case: based on a single value of the collateral or calculated for each house separately? 

The bankrupt's property (including land plots with unfinished houses) was transferred to the Fond razvitiya territorii (FRT) for completion of construction. Secured creditors (participants in shared construction who entered into agreements before the transition to escrow accounts) demanded compensation.

The courts of first and appellate instances calculated compensation based on the total value of all property transferred to the Fund. The district court ruled differently: the pledge of creditors' claims is tied to specific houses and plots, so compensation must be calculated separately for each of them. Arbitrary netting violates the interests of the TDF and other creditors.

The Supreme Court will consider this contentious issue on September 29th.

"...The cassation court rightly drew attention to the fact that in relations with the FRT, equity holders simultaneously act as creditors for claims for the transfer of apartments (claims are included in the register of creditors) and as secured creditors. This, of course, creates confusion, increases risks and creates unimaginable problems for the court, which cannot allow duplicate claims," explained Olga Pleshanova, Head of the Analytical Service at Infralex.

The expert explained how these legislative contradictions were formed and what role in the history of the issue was played by:

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