Sergei Bakeshin commented for the Novy Prospect on a dispute about a change of a priority of claims of affiliated creditors in a bankruptcy case

At the end of October 2020 the first instance court restored the former managers of the bankrupt International Bank of Saint Petersburg in the Register of creditors of the first order. The bankers as private depositors are demanding to return them of almost 1 billion rubles stuck in their bank accounts. The state corporation Deposit Insurance Agency (which rescues the bank) is trying to appeal against the court decision.

It should be noted, that earlier courts had different solutions to the question of returning the money to the people who controlled the business. However, in 2020, the Presidium of the Supreme Court of the Russian Federation approved the Review of judicial practice of resolving disputes related to the establishment in bankruptcy proceedings claims of affiliated creditors. 

“According to the new rules, affiliated and controlling business persons` claims for the return of a compensatory financing (money provided in a situation of property crisis to overcome it) are subject of subordination,” Sergei Bakeshin, Head of Dispute resolution and Insolvency practice at Maxima Legal, explained for the Novy Prospect online edition. According to the expert, the affiliated creditors must prove that the disputed deposits were not compensatory financing. “If anyone has reasonable doubts that the financing provided to the bank by the controlling person was compensation, it is up to those who gave the money to refute these doubts,” Sergei stressed.

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