Sergei Bakeshin commented for the Novy Prospect on Sevkabel`s bankruptcy

Bank Trust has initiated bankruptcy proceedings against Sevkabel, a major St Petersburg cable plant. The enterprise was the guarantor of billions worth of credits of the Rosscat holding company which it was a part of and was declared insolvent in spring 2020.

As Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, explained to the Novy Prospect online edition, before the bankruptcy petition was considered it was decided to liquidate Sevkabel, so the court applied the simplified debtor bankruptcy procedure, which immediately opens bankruptcy proceedings.

It is also noteworthy that several companies applied for bankruptcy of Sevkabel almost simultaneously. According to Sergei, “this shows that there was a fierce fight between creditors as to who would be the first to file for bankruptcy and who would suggest the candidate of bankruptcy manager”.

 At the same time, the main creditor retained the possibility to save the enterprise. “It is possible to sell it as a single lot. One can use the mechanism of replacing assets (to create a new company on the basis of the debtor’s property). In the end it is possible to note the decision on liquidation”, – Sergei Bakeshin has commented.

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