Sergey Bakeshin has provided his comments to RBC on a conflict over the sale of insolvent assets through an audition

After an audition, Noviye Kommulnalniye Tekhnologii (NKT), as the main creditor of Transportno-logistichesky Kompleks (TLK), can receive the property of its debtor, in particular the multi-purpose terminal Yug-2 to offset its debt. At the same time, Novotrans, a major railway company, which owns more than 75% of the insolvent company’s shares, is trying to challenge this right before an ombudsman, citing violations that prevented it from taking part in the bidding.

Head of the Dispute Resolution and Insolvency Practice at Maxima Legal, Sergey Bakeshin, explained to RBC Peterburg the procedure for conducting an auction and noted that property which has been used as a deposit is subject to a special rule, that a secured creditor has a right to acquire the property with a valuation that is 10% lower than the starting price at a further auction.

According to Sergey, the creditor who wishes to make use of such a right should send to the insolvency representative an application which it is difficult to undo. A creditor can try to challenge the evaluation and the bidding process, but it is very likely that the deadlines for this have already expired, Sergey added.

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