Dmitry Uryakin has commented for NP on the termination of the bankruptcy case arising from a debt of over RUB 1 bn

The Commercial Court of St Petersburg and the Leningrad Region decided to terminate proceedings on a claim filed by Rosselkhozbank to declare Molochnaya Kultura (Dairy Culture ) LLC, a company of the same name holding, bankrupt. The court also ruled on the insolvency petition of Seltso JSC, which is part of Molochnaya Kultura. The dispute is about the debt of more than RUB 1 bn.

According to Dmitry Uryakin, Senior Associate, Head of General Business Law practice at Maxima Legal, the bankruptcy case of Molochnaya Kultura was terminated due to the repayment of the claim of the only creditor-applicant, namely Rosselkhozbank. “This is hinted at by the content of the bankruptcy court’s ruling of 23 January this year, which states that one of the persons, Seltso JSC, objected to the bank’s application, as it had repaid Molochnaya Kultura’s debt to the bank in full,” the expert explained to Novy Prospect online edition.

At the same time, the court needed to check the presence of applications from other creditors to declare Molochnaya Kultura bankrupt. “In their absence, it is possible to refuse Rosselkhozbank in the introduction of the supervision procedure, and the bankruptcy proceedings of Molochnaya Kultura can be terminated”, Dmitry Uryakin added .

In order for the court to have grounds to terminate bankruptcy proceedings, it is generally sufficient for a debtor or a third party to make the amount of the principal debt (and not financial sanctions, i.e. penalties and fines) below the threshold of  RUB 300,000. “Without seeing Rosselkhozbank’s statement, it is difficult to say what the composition of the claims made by Molochnaya Kultura was.I assume that it was not only the principal debt, but also financial sanctions. If so, it is possible that not all the claims were settled, but only a part of them.But even this could be enough to terminate bankruptcy proceedings”, Dmitry emphasised.

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