Sergei Bakeshin has commented on the duration of insolvency proceedings for heat supply entities in two large districts of St Petersburg

Sergei Bakeshin - Counsel

In 2012, Lenteplosnab CJSC, which previously managed heat supply in the Pushkin and Kolpinsky districts of St Petersburg, declared itself insolvent. In 2013, a court appointed administrators, and insolvency proceedings are still ongoing. CJSC Lenteplosnab entered into a simple partnership with the State Unitary Enterprise Pushkinsky TEK, which, after a five-year insolvency procedure, was liquidated in March 2020.

“On average, the insolvency of a legal entity lasts about 2.5 years. 5 years is a common practice and 8 years is an extremely long time”, said Sergei Bakeshin, Head of the Dispute Resolution and Insolvency practice at Maxima Legal, to Delovoy Peterburg. The costs incurred by the parties in the case depends on their activity in the process and other costs but the administrators’ costs alone for the two companies is close to 5 million roubles.”

Sergei also noted that the duration of PushTEK’s insolvency was apparently related to the difficulty of selling its main assets. The insolvency of CJSC Lenteplosnab has been prolonged since the collection of receivables has not been completed.

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