Sergei Bakeshin has commented for the Kommersant on the prospects of bankruptcy of the company, that owns part of the Taleon Imperial Hotel on Nevsky Prospekt

The Commercial Court of St Petersburg and Leningrad Region has introduced the observation procedure in respect of Eliseev Palace Hotel CJSC, which owns part of the Taleon Imperial Hotel on Nevsky Prospekt. The defendant is attempting to appeal against the court decision now.

It should be noted, that Eliseev Palace Hotel CJSC is bankrupted by Bank Saint-Petersburg due to the debt of 5.5 billion rubles on the loan. However, the company also has larger creditors. According to the materials of the case, VEB.RF the state corporation required the debt of almost 7 billion rubles in October 2020. Alexander Ebralidze, beneficiary of Eliseev Palace Hotel CJSC is also trying to get in the register of creditors with the requirements of 585.6 million rubles.

Sergei Bakeshin, Head of Dispute Resolution & Insolvency Practice at Maxima Legal, has explained to the Kommersant newspaper that observation is the first bankruptcy procedure, when enforcement proceedings suspend, any penalties and other financial sanctions do not impose and restrictions on certain categories of transactions by the debtor are introduced. Based on the results of the observation, bankruptcy proceedings are likely to be opened, during which a bankruptcy manager will sell the property of Eliseev Palace Hotel CJSC and distribute the funds received among its creditors.

According to Sergei Bakeshin, the chance of Eliseev Palace Hotel CJSC to appeal the decision is small, especially as other creditors appeared in the bankruptcy case. On the other hand, the expert pointed out that the hotel business was on the list of industries subject of the moratorium on bankruptcy. Eliseev Palace Hotel CJSC indicates as the main type of its activity the rent and management of own or leased real estate, rather than the activities of hotels and other places for temporary accommodation. However, it is possible that the company will manage to convince the court that they should also be subject to this moratorium,” Sergei Bakeshin stressed.

To read the full article (in Russian) please see the website of the Kommersant >>>