Sergei Bakeshin commented to Kommersant on the insolvency of a major residential real estate developer in the Leningrad Region

The fund for the protection of citizens’ rights and participants in a building construction, Dom.RF, has a right to petition on behalf of defrauded equity holders for the insolvency of the building developer, which had delayed completing construction by more than six months. Classification of the developer as insolvent will enable the construction to be completed. At the same time, in response to the request of the Governor of the Leningrad Region, Alexander Drozdenko, to petition for the insolvency of Normann LO LLC, the fund asked the Commercial Court of St. Petersburg and the Leningrad Region to adjourn the hearing scheduled for August 28 due to the need to select an “experienced and reputable administrator”.

Head of Dispute Resolution and Insolvency Practice at Maxima Legal, Sergei Bakeshin, explained to Kommersant newspaper that the petitioner for insolvency can propose an administrator. If Dom.RF does not act as the petitioner, then it will not have the authority to appoint the administrator. Sergey explained that at the upcoming court hearing the issue of not only the appointment of an administrator in Normann LO, but also assess whether the company is insolvent.

To read the article in full (in Russian) please see the Kommersant website >>>