Sergei Bakeshin has commented for Novy Prospect on the bankruptcy petition of Pella shipyard amid rumours of a sale of the enterprise

Arsenal Machine-Building Plant has filed its third bankruptcy petition for the year against its creditor Pella, the regional shipbuilding company. The claims amount to almost RUB 242 million. Sergei Bakeshin,Head of Dispute Resolution and Insolvency practice at Maxima Legal, has explained Novy Prospect online publication that this is the amount of outstanding money liabilities.

Meanwhile, the litigation between Arsenal and Pella is unfolding against the background of rumors about the sale of the shipyard. According to Sergei Bakeshin, buying the assets at an auction held within the bankruptcy proceedings usually gives a buyer a substantial discount. However, if the potential buyer will not control Pella’s bankruptcy or will not agree in advance with a controlling creditor, a number of risks are possible. “It could be a long time before the auction starts. It is unclear what state the assets will be in by then and whether the bankrupt company will still be a going concern. It may turn out to be just an equipment warehouse without labour force, economic ties and an order book. It is also unknown whether the company will be put up for the auction as a single economic unit or it will be sold off in pieces,” said Sergei.

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