Sergei Bakeshin has told the Novy Prospect about the prospects of bankruptcy of the St Petersburg defense plant

Sergei Bakeshin - Counsel

The Commercial Court of St Petersburg and Leningrad Region introduced bankruptcy proceedings against JSC Zavod Izmeritel, a supplier of the defense holdings Almaz-Antey, Roscosmos, Sukhoi, and Tactical Missiles Corporation. The total amount of debts of the plant exceeds 272 million rubles, and among the main creditors of the plant is its bankrupt shareholder JSC Istochnik Scientific-Research Design and Technological Accumulator Institute.

According to the resource kartoteka.ru, the beneficiary of JSC Istochnik is JSC Accumulative company Rigel, which is owned by Tellus Group holding in a strategic investment partnership with the Euroinvest Investment Company. Both companies are active participants of St Petersburg development market. Amongst others, Tellus Group manages a number of industrial parks in the Leningrad region, and Evroinvest has recently redeveloped a major St Petersburg-based enterprise Svetlana by optimizing its production and converting unused factory lands for residential property development.

Sergei Bakeshin, Senior associate and Head of Dispute Resolution and Insolvency Practice at Maxima Legal, commented on the situation specifically for the online business publication Novy Prospect.

“Izmeritel and Rigel occupy adjacent land plots on the Petrograd side, and the fate of these enterprises is likely to be similar. Probably, a part of their production will be transferred to a suburban industrial park, and the former industrial areas in the center of the city will be redeveloped”, said Sergei. At the same time the expert stressed that according to his estimations, not more than 5% of total number of bankruptcy proceedings will end up with solvency restoration. “This is the so-called liquidation rather than rehabilitation procedure of bankruptcy,” explained Sergei Bakeshin.

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