All cases: Bankruptcy
Bankruptcy
- Protection of interests of creditor – large auto parts manufacturer in counterparty bankruptcy case. The lawyers represented the client in separate disputes in the debtor’s bankruptcy proceedings. The lawyers successfully discovered that the counterparty had falsified pledge documents relating to a client’s receivables.
- Protecting the interests of an international company during liquidation of a Russian legal entity. The project was complicated by a corporate conflict between the company’s shareholders, as well as by involuntary bankruptcy and liquidation of an affiliated company on the Isle of Man. In all, our lawyers handled more than 10 lawsuits under the project, including a Supreme Court case. After three years of corporate litigation, the firm’s team succeeded in having an international company’s stake in a Russian subsidiary be recognized.
- Represented a Russian subsidiary of an international bus and trailer manufacturer in connection with its inclusion on a debtor’s creditor list; analyzed the potential liability of the debtor’s beneficiary.
- Advising an international automobile manufacturer in connection with a claim based on an unfulfilled distribution agreement against a Russian dealer and its beneficiary (on the basis of a surety bond) in the context of the impending bankruptcy of the dealer, and developing a comprehensive strategy for recovery of debts from the dealer and its controlling parties.
- Representing the liquidator (trustee in bankruptcy) of a Maine company in the bankruptcy case of a Russian subsidiary, including incorporating the client’s claims into the creditor register, recognizing the client as a secured creditor and participating in creditor meetings. The case was significantly complicated by a foreign element (in addition to the client’s jurisdiction, foreign companies also acted for other creditors of the debtor and were used by unscrupulous participants in the proceedings to drag things out) and lasted for over 5 years. Bankruptcy proceedings had been instituted, the debtor’s assets were being prepared for sale.
- Represented a participant in two Russian LLCs whose assets were misappropriated due to mismanagement. In order to minimize the client’s risks (including bringing the client to subsidiary liability), a decision was made to file for bankruptcy of those companies. This case is complicated by the fact that the main creditor of the companies is a bank, which itself is in bankruptcy proceedings, and the bank’s bankruptcy trustee (DIA) acts on its behalf. With regard to one of the companies, bankruptcy proceedings have been introduced, a bankruptcy manager has been appointed, and work is going on to identify assets. A monitoring procedure has been instituted with respect to the other company. Lawyers have gathered evidence proving that the client did not make decisions which led to the bankruptcy of the companies. In negotiations with DIA they succeeded in proving that the client was not to blame for the bankruptcy of the companies. The client avoided subsidiary liability.
- Representing a leading European auto parts manufacturer in a bankruptcy case against a Russian company, in a separate dispute over its inclusion on the creditor claims register. Representing a client in a dispute with a bank (also a creditor of a debtor) over the recognition of the latter’s pledge creditor status and the acknowledgement of the bank’s claim against the client. In the course of the case it was discovered that the bank’s claim for recognition of the pledge creditor status was based on false documents which allegedly evidenced the bank’s right of claim against the client.
- Represented an individual client of a Russian bank in disputes related to contesting the bankruptcy case regarding back to back financing of the client’s business against security provided by the client. Despite the fact that the practice of this kind of cases (including cases of clients of this bank) was negative, we managed to obtain a favorable decision in one of the disputes, proving that the claims of the bank (on behalf of which DIA acted) were unreasonable. The decision was upheld in the court of appeals. In the context of a cumulative dispute between the client and the bank, this allowed the client to obtain a better bargaining position.
- Representing clients in disputes over inclusion of claims on the creditor claims register. Given the debtors’ lack of assets, the client’s goal was to comply with the requirements for recognizing the debt as bad debt.
- Represented the client in a dispute with a bankruptcy trustee to have a transaction declared null and void. The amount to be returned to the bankruptcy estate was substantially reduced.
