Sergei Bakeshin has commented to the Novy Prospect on the seizure of accounts and property of former Sevkabel executives worth about 2.3 billion rubles

The 13th Commercial Court of Appeal has taken interim measures in the amount of 2.269 billion rubles against the accounts and property of top managers and the management company controlling bankrupt company Sevkabel. It should be noted that the mechanism was used as part of a dispute to bring the former executives to subsidiary liability for the debtor’s obligations to creditors.

“A seizure has been imposed on all property and accounts (both existing now and those that may emerge later). An exception is made only for 80% of monthly salary of individuals, these amounts they will be entitled to dispose of on their own,” Sergei Bakeshin, head of dispute resolution and insolvency practice at Maxima Legal, explained to the Novy Prospect. online edition The expert also reminded that unlawful actions with seized property including its hiding shall be punishable under criminal law.

In this situation, the interim measures serve as insurance policy in case the former top managers of Sevkabel are brought to subsidiary liability by the court. However, as Sergei explained, it may take months or even years, and the amount of outstanding claims will be clear only after the sale of the debtor’s property and payments to creditors.

“Creditors can take over the relevant part of the claims against the controlling persons, or instruct the bankruptcy manager to collect money from the controlling persons, or sell the claims against them at a public auction. Under either of these options, it is highly unlikely that the controlling persons will actually recover the full amount. So if they are brought to subsidiary liability these individuals are likely to face bankruptcy,” Sergei Bakeshin commented.

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