Expertise/Insolvency

Practice

Insolvency and Subsidiary Liability

The insolvency practice specializes in advising on corporate insolvency cases and the disputes related to them.

We represent debtors, creditors and controlling persons, and advise on the restructuring of liabilities and the legal consequences of a company's financial crisis.

The main areas of work are support in insolvency procedures, representation of creditors, and disputes over subsidiary liability, recovery of damages and challenges to the debtor's transactions. The practice's clients include companies and their owners, executives and beneficial owners, as well as counterparties whose property interests are affected by an insolvency.

The strategy for participating in a case is developed in the light of the debtor's financial position, the structure of its liabilities, and the history of its transactions and management decisions. Particular attention is paid to the interplay between separate disputes, the consistency of legal positions and the consequences of procedural decisions for the client's interests.

Services

Creditor Protection

Subsidiary Liability

Challenging the Debtor's Transactions

Damages from Controlling Persons

Debtor Insolvency

Asset Protection

Restructuring and Settlement

Documents and Consultations
Selected Experience
01 / 04

Subsidiary Liability

Reversal of a subsidiary liability finding in the Supreme Court of the Russian Federation

Challenge

The insolvency administrator and creditors sought to hold the chief executive of the bankrupt company personally liable for its debts. The lower courts granted the claims.

What was done

The case was taken to the Supreme Court, the good faith of each management decision was proven, and the Supreme Court set aside those court rulings. The amount of liability avoided is comparable to the total amount of creditors' claims in the register.

Acting for the creditor

Inclusion of an affiliated creditor's claims in the register: five related bankruptcies

Challenge

Five parallel bankruptcy cases were under way within a group of companies. The client was a creditor affiliated with the debtor, and the courts applied subordination: its claims were lowered in ranking.

What was done

A legal position was developed demonstrating that there were no grounds for subordination. The court rulings were set aside, and the claims were included in the register in full, on an equal footing with independent creditors, in all five cases.

Returning assets to the bankruptcy estate

Recovery of assets diverted on the eve of insolvency

Challenge

The debtor had diverted its assets through a chain of formally independent transactions, each of which appeared to be an ordinary commercial operation.

What was done

The full chain was reconstructed, and the interconnection and invalidity of each link were proven. The assets were returned to the bankruptcy estate in full, and the creditors obtained a real source of repayment.

Asset Protection

Protecting a client's assets in a third party's insolvency

Challenge

An attempt was made, by challenging transactions, to include the client's property – acquired, paid for and in commercial use – in the bankruptcy estate of an insolvent counterparty.

What was done

A legal position was built confirming the independent nature of the client's title. The court dismissed all the challenges, and the assets were preserved in full, without concessions or settlement agreements.

Key Contacts
Anna Tarlakovskaya Anna Tarlakovskaya Partner Andrey Nemov Andrey Nemov Partner

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