Sergei Bakeshin has talked with Kommersant about the trends in the Russian insolvency market in recent years

One of the outcomes of 2019 in the construction market of the Leningrad Region was a surge in the number of developers being declared insolvent. Even large companies fell under the knife, the financial difficulties which were not widely known a couple of years ago. According to Sergei Bakeshin, Head of the Dispute Resolution and Insolvency practice at Maxima Legal, the share of construction companies in the total number of insolvencies of legal entities in Russia has not changed.

Sergei explained to Kommersant that over the past five years the number of insolvencies of legal entities has not changed, but in 2018 the number began to decline, and this trend continued in the first three quarters of 2019. If the situation does not change, then last year’s figures may come closer to the statistics of the pre-crisis 2013, Sergei predicted.

At the same time, Sergei noted that in the total number of insolvencies, the share of construction companies remained unchanged at about 20%. In his opinion, the most common reason for declaring them insolvent is a delay in payments. Often, their insolvency can occur in an avalanche-like manner: the insolvency of a developer or contractor creates financial problems for numerous small subcontractors, the lawyer explained.

To read the full article (in Russian) please see the website of Kommersant >>>