Sergei Bakeshin assessed for CRE the situation on the real estate market after the lifting of the moratorium on bankruptcy

Sergei Bakeshin - Counsel

CRE magazine asked experts to assess the impact of the end of the moratorium on bankruptcy on the commercial real estate, retail, e-commerce and logistics markets. As a reminder, this economic support measure was introduced in April of this year for a period of 6 months.

According to Sergei Bakeshin, Senior Associate, Head of Dispute Resolution and Insolvency Practice of Maxima Legal, the moratorium resulted not only in the impossibility for creditors to file for insolvency, but also in the suspension of enforcement proceedings, penalties, fines and other financial sanctions and prohibition to enforce the pledged property. These restrictions have now been terminated, and a certain redistribution in the real estate market may begin even without bankruptcies – for example, in relation to pledged properties. “Creditors could not file for bankruptcy immediately after the end of the moratorium because they first have to publish a notice of such intention and wait at least fifteen calendar days. Therefore, a wave of postponed bankruptcies has not yet been observed, but it may occur in the near future,” the expert stressed.

To read the full article (in Russian) please visit CRE website >>>