Sergei Bakeshin commented for Novy Prospect the possible purchase of Vyborg PPM’s assets by Segezha Group

Sergei Bakeshin - Senior Associate

According to several resources Segezha Group Holding is purchasing the assets of Vyborg PPM which were formerly owned by Vyborg Forestry Development Corporation (VFDC). Bankruptcy proceedings over VDFC started 4 years ago. The biggest creditors during the beginning of bankruptcy proceedings were Bank VTB and several organizations connected with the owner of VFDC Alexander Sabadash, such as Bank «Tavricheskiy», «Vyborg cellulose» etc.

In the estimation of Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, the amount of voting creditors’ claims is about 3.9 billion rubles. «Among creditors are Bank «Tavricheskiy», falling under «Onexim» group of Mihail Prohorov (183,8 million rubles, 4,62%), «Roshimneft Consult» LLC (260,6 million rubles, 6,54%), «Fiord» LLC (192,2 million rubles 4,93%), «Fiord Consulting» LLC (961 million rubles, 24,14%), and «TD «Vyborg cellulose» LLC (661 million rubles, 16,6%)». These creditors in aggregate have 56.83% of votes and they are probably affiliated with each other because they stand in full solidarity with each other during creditors’ meeting and are usually represented by the same people» – explained the expert.

Sergei also pointed out that according to the decision of the creditors’ meeting the assets of VFDC are currently used by «MFC Capital» LLC and its’ subsidiary «MFC Vyborg Les» LLC. «Most likely Segezha Group is going to be their subtenant» – suggested the specialist.

Sergei Bakeshin has also assumed several ways of closure of a deal with the potential investor. «The easiest way is to sell the debtors assets. The possessions can be split into several lots so that the investor can buy only the «cellulose» assets» – told the expert. In his opinion, there’s also a possibility of using the procedure of replacing debtors’ asset. This means that the debtors’ possessions will be vested in authorized capital of one or more companies and shares of these companies will be sold to investors or will remain the debtors’ property. «In that case the investor can buy shares of the company that has the assets he needs. The possibility of such compartment depends on the decision of creditors including pledge lenders» – noticed Sergei.

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