A company-creditor received a court order on collection of a significant monetary sum from a company-debtor in its favour. This order was not executed due to the fact that at the time it was stated the debtor had practically ceased its business activity and the assets to be collected were in absentia. The creditor, having regarded this debt as practically hopeless, nevertheless addressed PRESIDENT CONSULT with a request to restore its violated rights.

The specialists of this firm applied to the Arbitration Court with a claim on recognition of the debtor as bankrupt. Following the initiation of the bankruptcy proceedings and as a result of actions undertaken by the arbitration manager, it was discovered that the debtor owned a share in the ownership title for a real-estate object, and this property was transferred to a third party shortly before the bankruptcy proceedings. Right after the filling by the arbitration manager a claim seeking to recognize the sale and purchase transaction of that property as invalid, the purchaser of the property addressed the arbitration manager with a proposal to pay the debt of the company-debtor towards our client. As a result of conducted negotiations, and in order to terminate the dispute of its rights for real-estate, the purchaser had paid the debt of the debtor-company not only towards our client but in relation to other creditors which included tax inspection among others.

A debtor company, as initiated by one of its creditors, was recognized bankrupt and bankruptcy proceedings were instigated against it. The only asset which could have been a subject of foreclosure was debtor indebtedness whose payment was highly doubtful. A company which was the key creditor hereof, addressed PRESIDENT CONSULT seeking legal assistance in the recovery of debt.

Following the analysis of the situation by our lawyers, a decision was taken to carry out some actions on collection of the debtor’s debts. Upon enforcement of some corresponding court resolutions it turned out that the debtors were also insolvent and, in its turn, it was decided to launch bankruptcy proceedings in relation to these insolvent debtors for the purpose of revealing business operations already executed by them. As a result of the monitoring procedure in relation to one of the debtors, it became clear that shortly before the application on bankruptcy was filed against him, the debtor transferred practically all of the assets (transport facilities) owned by him to a third party practically without any actual payment. These transactions were disputed and transport facilities were arrested. When the court acts came into legal force, the property regained the status of bankruptcy assets and was sold at an auction. The funds received from the sale of property were initially transferred to the debtor of our client as the main creditor of the company which sold the transport facilities and further, - to our client as payment of its claims on debtor indebtedness.