RBC has quoted Sergei Bakeshin’s opinion on the reason for initiating personal bankruptcy of a person facing subsidiary liability

Sergei Bakeshin - Counsel

Myasokombinat  Severo-Zapad Meat Processing Plant, declared bankrupt in 2018, has filed for personal bankruptcy of its founder Gennady Yemelyanov. According to Sergei Bakeshin, Head of Dispute Resolution and Insolvency practice at Maxima Legal, the creditors are thus trying to prevent the entrepreneur from avoiding paying the company’s debts.

“A controlling person as a rule is not able to pay off debts of his company and in any case does not try to do it, transfers assets to relatives and friends, enters into marriage contracts, etc. In order to oppose such actions, challenge the executed transactions, return the withdrawn assets, creditors have to initiate bankruptcy proceedings against the controlling entity itself,” – quoted the expert as saying by RBC.

To read the full text of the article (in Russian), please see the RBC website >>>