Insolvency & bankruptcy

WHAT WE DO/ SPECIFIC AREAS OF FOCUS

During the current economic and financial turmoil, effective legal support in the area of restructuring, insolvency and bankruptcy is vital.

The Bryan Cave Leighton Paisner (Russia) LLP bankruptcy group has extensive experience in providing appropriate support for company bankruptcy procedures and acting for creditors during troubled debt recovery in various areas of business. This helps our lawyers evaluate correctly the prospects for debt repayment by troubled debtors, select the best option for a client for settling troubled debts and make sure all the client's claims are satisfied as far as possible during debtor bankruptcy procedures.

A holistic approach and win-win financial solutions for our clients, tailored to both business objectives and the market situation, are the key principles pursued by our bankruptcy team.

WHY US?

  • We are one of few international law firms in Russia able to offer its clients the full range of legal services on restructuring, insolvency and bankruptcy, including cross-border bankruptcy.
  • Our bankruptcy group has unique experience in supporting clients at any stage: from advising on particular issues to rendering comprehensive legal support for all bankruptcy procedures. Moreover, we provide our clients with professional services of the highest quality, irrespective of their type and scope.
  • Having leading specialists in different branches of Russian law (including tax, real estate, corporate governance, criminal law and proceedings, etc.), we are able to provide overall legal support on all issues arising from both debt enforcement and bankruptcy procedures.
  • Extensive experience in supporting company bankruptcy procedures in different sectors.
  • Wide experience in cooperating with professional court-appointed administrators (insolvency officers) whom we may recommend to our clients for conducting relevant procedures in accordance with the law.
  • We hold a strong position on the Russian market and are able to represent clients throughout Russia: in contrast to many of our competitors, we have a full range of capabilities, resources and experience for acting for our clients before supervisory, law-enforcement and other agencies in virtually all parts of Russia, from Kaliningrad to Sakhalin.
  • Our bankruptcy group is distinguished by its ability to engage specialists in virtually all the main legal systems (English, US, Russian, Chinese, Islamic, German, French and Israeli law) from within a single law firm, this constituting a tremendous advantage for clients whose interests are not confined to the Russian Federation.

We have a rather flexible fee policy. It includes hourly rates of our specialists, one-off or monthly remuneration or a "success fee". Depending on the scope of the services, we select the most appropriate payment terms.

Services to Creditors

  • Drafting and submitting to a state arbitration court a creditor’s bankruptcy petition against the debtor.
  • Preparing and submitting to a state arbitration court a creditor's claim for inclusion on the register of the debtor's creditors.
  • Identifying transactions by the debtor that may be challenged on the grounds stipulated by the applicable legislation, including the Federal Law “On Insolvency (Bankruptcy)”, drafting statements of claim and issuing instructions to court-appointed administrators on the need to challenge transactions.
  • Enforcing secondary liability claims against a debtor’s controlling parties (CEO, founders, etc.)
  • Taking actions for a secured creditor to retain a pledged asset in bankruptcy proceedings, including preparing and forwarding the relevant application to the receiver.
  • Collecting and compiling data in relation to debtors and their financial standing.
  • Debt enforcement, including drafting and filing statements of claim, court representation and support for enforcement proceedings.
  • Out-of-court debt repayment, including acting for creditors in negotiations with debtors, preparing and forwarding repayment demands.
  • Pledged property foreclosure, including appraisal of the pledged asset, preparing and filing statements of claim, acting in court and supporting enforcement proceedings.
  • Legal support for assignment of receivables.
  • Arrangements for a comprehensive troubled debtor appraisal.
  • Analysing and making recommendations on proposals for replacing debtor's assets and the termination compensation issue.
  • Elaborating a bankruptcy action plan depending on the creditor's status and the amount of its claims in relation to the aggregate claims by the debtor's creditors.
  • Criminal prosecution of a debtor's controlling parties (CEO, founders, etc.) and individual debtors, including for fraud, premeditated and fictitious bankruptcy.
  • Other legal services for representing a client as a creditor.

Services to Debtors

  • Representing clients in negotiations with creditors, including with respect to debt restructuring.
  • Legal support for debt novation/assignment of receivables.
  • Preventing debt enforcement, including by acting in court and challenging transactions.
  • Elaborating bankruptcy prevention plans.
  • Criminal prosecution of a debtor's former controlling parties (former CEOs, founders, etc.).
  • Analysing the property and financial standing of a debtor to determine a liquidation strategy.
  • Elaborating a liquidation plan, including through bankruptcy procedures.
  • Legal support for voluntary liquidation.
  • Drafting a debtor’s bankruptcy petition and submitting it to a state arbitration court.
  • Other legal services for representing a client as a debtor.

Services to Debtors/Creditors

  • Advising on debt restructuring, liquidation and bankruptcy.
  • Appealing against actions/omissions by insolvency officers in courts, the federal executive supervisory body and/or self-regulating organisations.
  • Legal support for acquisition of debtor accounts payable.
  • Acting for clients in court hearings of debtor bankruptcy cases.
  • Challenging unjustified and/or disputable claims against debtors in courts.
  • Drafting and filing of applications with state arbitration courts for the claims to be included on the creditors' register.
  • Participating in creditor meetings (creditor committees).
  • Organising and conducting meetings of the debtor's creditors if court-appointed administrators avoid doing so.
  • Legal support for receivership proceedings, including:
    • drafting regulations on the procedure, the timelines and the terms for selling the debtor's assets;
    • drafting and negotiating with the pledge holder regulations on the procedure, the timelines and the terms for selling the debtor's pledged assets;
    • organising sale of the debtor’s assets by auction.
  • Developing an accounts payable acquisition strategy and action plan in order to obtain a majority vote at the creditors’ meeting.
  • Acting for clients in distressed debt trading.
  • Challenging debt portfolio sales results in court.
  • Selecting an insolvency officer on agreement with the client.
  • Legal support for insolvency officers.
  • Legal support for the supervision procedure.
  • Legal support for financial recovery.
  • Legal support for external administration.
  • Challenging debtor property appraisals in court.
  • Amicable settlement drafting, negotiating and signing support.

For more details about our international experience, please click here.

Clients:

Insolvency & bankruptcy

  • Mars
  • Brunswick Rail Leasing
  • Sukhoi Company

Experience

Insolvency & bankruptcy

Great Wall Motors

Handled a complex project for Great Wall Motors to recover over USD 50 m from a group of unscrupulous Russian counterparties. Aspects such as liquidation and insolvency of legal entities, application of international regulations and ICC Rules were involved.

Two major creditors

Provided comprehensive advice to two major creditors in the Mezhprombank bankruptcy proceedings (an on-going project).

Volkswagen Group Rus

Provided comprehensive support to Volkswagen Group Rus in bankruptcy cases of a number of former dealers. Bankruptcy creditors in one such case sought to invalidate pre-bankruptcy client/former dealer transactions to more than RUB 231 m. We succeeded in having the court uphold the legality of these transactions. As a result of the bankruptcy proceedings, our client’s claims were partially satisfied.

Major global cosmetics and perfumery manufacturer

Provided comprehensive support to a major global cosmetics and perfumery manufacturer in the bankruptcy case of Arbat (a big perfume retailer). We succeeded in having our client’s claims, worth over USD 12 m, added to the creditor claims register and were subsequently active in exercising control over the bankruptcy proceedings and receiver’s actions.

Mars, Estee Lauder, Brunswick Rail Leasing, Aeroplex

Provided comprehensive representation services to Mars, Estee Lauder, Brunswick Rail Leasing Aeroplex in major corporate bankruptcies in which our clients were involved as creditors.

News & Insights:

Insolvency & bankruptcy