Sergey Bakeshin has provided his comments RBC on the insolvency of a joint venture 

A joint venture between Pervaya Mebelnaya Fabrika (PMF) and Germany company Alno has been made subject to insolvency proceedings. According to the official position of PMF, the losses of the project result from the dissolving of an entity that was connected with the departure from the business of an insolvent foreign partner.

“Judging by the insolvency proceedings, it has been initiated in the interest of Alexander Shestakov and PMF. Production which was launched last year will likely continue and as a result of insolvency proceedings will not belong to PMF and Alno but to Alexander Shestakov or some kind of structure connected with him”, commented Head of the Dispute Resolution and Insolvency department at Maxima Legal, Sergey Bakeshin.

According to Sergey, the conduct of PMF in this situation may be adversely impacted only if a previous partner seeks to defend his/her investments in the joint venture. “To date, Alno has not sought to do this.  After all, such a claim would require a lot energy, funds and time and with an uncertain result”, explained Sergey.

To read the article in full (in Russian), please see the RBC website.