Helping Survive Bankruptcy In Russia and Move Forward
We are proud to offer one-window service to our clients in corporate bankruptcy in Russia. We have a multiyear experience in providing legal and other services related to bankruptcy (insolvency) in the Russian Federation. Having strong connections with our partner law firms in Moscow, we make sure your interests are duly represented and protected there.
Bankruptcy in Russia and Secondary Liability
We can elaborate a customized comprehensive strategy aimed at protecting our clients’ interests not only in Russia, but in other jurisdictions as well, where there is a threat to them or their assets. Based on thorough analysis of your situation, we will suggest a series of measures to protect what still can be protected, on the one hand, and minimize losses, on the other hand. You will be represented by one of the best law firms in Moscow – our partner there.
Bankruptcy in Russia
Customized comprehensive strategies to protect clients’ interests during bankruptcy in Russia
Minimizing clients’ exposure to second liability in Russia and reducing its negative impact abroad
Bankruptcy of Banks
Multiyear experience of protecting our clients’ interests related to banks bankruptcy in Russia
We will address all other clients’ needs related to bankruptcy in Russia
In each country legal regulations on corporate bankruptcy have their peculiar features. However, what make the whole difference between corporate bankruptcy in any developed country and Russia is not the legal system, but the way the laws are applied, and the bankruptcy process unfolds there. One should have in mind that insolvency procedures in Russia, more specifically of those business structures which have significant assets, are very often accompanied by criminal persecution and secondary liability lawsuits against the controlling shareholders.
Having in mind that the number of the acquittals in criminal cases in Russia is less than 1%, it is not surprising that those shareholders tend to leave the country well in advance. However, fleeing to another country cannot be a viable solution in a long run. The further bankruptcy in Russia proceeds, the greater is the risk for major shareholders of being sued abroad in countries where they or their asset are. And if the shareholders did not try to defend their position in court in Russia, then some foreign courts can consider this as a tacit admission of guilt.
Thus, even if you think that the whole process is unfair and biased in Russia, you cannot afford to simply ignore it. For instance, let’s suppose the legal authorities of the country where you reside or where your assets are located receive a request from the Russian authorities to freeze all your assets. For sure, you will try to fight this request in the local court. However, unless you have well substantiated case and can demonstrate that the whole process in Russia was biased and unfair to you, you have little chances to succeed.
The court can take your side only if you have solid documentary evidence of multiple abuses of power, violations of laws, procedures, and other inconsistencies during the Russian insolvency process. And the only way you can collect all this incredibly important evidence is by taking part in the bankruptcy in Russia and in this way getting access to the Russian court materials.
It’s proved to be too costly just ignoring the very process of insolvency in Russia. The right approach would be to take part in it via you trusted law firm. This way you will be getting access to the court materials and constantly monitoring the whole process there. We will help you to set up everything you need to make sure your interests are legally represented and protected in Russia and other countries.
QUESTIONS & ANSWERS
The corporate bankruptcy in Russia has its specific features. On the formal side, i.e. in terms of the law on insolvency, one of peculiar features is secondary liability. On the practical side, it is noteworthy that bankruptcy of companies which have substantial assets often involves criminal lawsuits against the company’s major shareholders.
Secondary liability is personal liability of those controlling shareholders of a company, which actions or inactions led to the company’s bankruptcy, as established by court.
Secondary liability is claimed quite often when (1) company is under bankruptcy, and (2) it has significant assets, or (3) company’s controlling shareholders have significant assets.
You encounter criminal investigations very often in corporate bankruptcies when the company under bankruptcy or its controlling shareholders have significant assets.
Under the Federal Law on Insolvency (bankruptcy) of the Russian Federation #127 of 2002, in general the corporate bankruptcy should be finished in 3 years. However, it all depends on how big the company is, how many assets it has etc. It’s not unusual that this term is repeatedly extended by court decisions. For instance, big banks bankruptcy could take 5-8 years.