Sergei Bakeshin has commented to Delovoy Peterburg on the sale of claims against a businessman who had incurred subsidiary liability

Sergei Bakeshin - Senior Associate

In St Petersburg claims against Peter Tingaev, the former business partner of football player Andrei Arshavin, were put up for sale. The entrepreneur had incurred subsidiary liability following an insolvency case involving a Volkswagen and BMW dealership. Bidding is scheduled for 15 January 2020, for the right to claim 2.3 billion roubles.

Head of Dispute Resolution and Insolvency Practice at Maxima Legal, Sergei Bakeshin, explained to Delovoy Peterburg newspaper that several years ago, bringing to subsidiary liability almost always ended in the sale of a claim; now the law also provides for other ways of managing debt. Firstly, through debt collection from the controlling person as part of the insolvency procedure for the company, which is quite rare, since it delays the insolvency case. Secondly, through the assignment to the creditor of a part of this debt in the amount of the creditor’s claim.

“If there is a chance to get something from the controlling person, then lenders usually use the latter method. But in this case, the controlling person, Petr Tingaev, has been bankrupt for more than 4 years, so the chances of recovering debt from him are very low”, said Sergei.

Sergei noted that the bidding for the obligations of Peter Tingaev – had been undertaken previously. At first, the debt was sold at a nominal value of 2.5 billion roubles, but there were no buyers. The Insolvency Law provides that in repeated tenders, the property, including accounts receivable, is to be set at a price reduced by 10%.

“Peter Tingaev should be most interested in buying the debt. At least because the debt based on subsidiary liability will not be repaid upon completion of Tingaev’s personal bankruptcy. His detractors may also be interested, especially if they can find his property. Even if such property exists, the probability of recovering the entire amount of debt from Tingaev is closer to zero”, Sergei concluded.

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