Kirill Katkov has commented for Novy Peterburg on the valuation of the property of ROK-1 OJSC obtained as part of bankruptcy proceedings

ROK-1 OJSC, Fish Processing Plant, has received property valuation within the framework of bankruptcy proceedings. According to the property valuation reports commissioned by a bankruptcy trustee, the company has specialised machinery and equipment, production buildings, a warehouse, the right to lease a land plot and other assets with a total value of over RUB 185 mn. However, according to market participants, this is a small price for a large food industry enterprise.

Kirill Katkov, Associate at Maxima Legal, explained to Novy Prospect online edition that it cannot be ruled out that in the future some other assets of the company will be identified and valued.

In the expert’s opinion, the small amount of identified property for the scale of the debtor’s activities cannot be explained by the sale of the remaining property under the bankruptcy procedure. The lawyer reminded that the debtor was not subject to a financial rehabilitation procedure, only to supervision. “Under this procedure, alienation of property to restore solvency is not carried out. The purpose of supervision is to identify and preserve a debtor’s property, as well as to form a register of creditors’ claims in order to understand whether recovery is possible or the only way out is property realisation,” Kirill Katkov commented. At the same time, the expert reminded that without the permission of a  manager, a debtor in supervision can not sell property, the book value of which exceeds 5% of the book value of assets.

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