Sergei Bakeshin commented for Novy Prospect the amicable settlement in Sevkabel’s bankruptcy case

The Arbitration Court of St. Petersburg and the Leningrad Region has approved an amicable settlement in the insolvency case of Sevkabel Production Company LLC. The company’s debts will be repaid by the plant’s investor, STK Group LLC, part of the Akron Holding group of companies. The total debt of the plant exceeded 5.5 billion roubles, the main creditors were Inotech and Trust Bank. As part of the amicable settlement the Trust will receive 200 million rubles and most of the remaining creditors will receive 15% of their claims. The payments will take place within 2 years. The creditors of Sevkabel have waived their claims against each other.

Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, drew attention of Novy Prospect to the fact that Sevkabel’s insolvency case should be considered in regard to the bankruptcy of its parent company Rosskat. “Most of the lawsuits against Sevkabel are based on its guarantees for Rosskat, so it would be reasonable to consider the bankruptcy cases of these two companies in the relation to each other,” said the expert.

According to Sergei, prerequisite for entering into an amicable settlement was cancellation by the Supreme Court of Russian Federation of an appeal and cassation decision which subordinated (lowered in the order of priority) the claims of Trust Bank, and stripped powers of the bankruptcy trustee proposed by him.

In addition, the Trust’s claims are secured by a pledge of equipment belonging to Sevkabel. “The bank has regained full control over the plant’s bankruptcy proceedings. In such a situation, an amicable settlement was the best way out for other creditors, including those related to Sevkabel’s previous management. Given the fact that in most procedures unsecured creditors receive nothing at all, everyone was left a winner,” said Sergei Bakeshin.

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