Sergei Bakeshin assessed for Delovoy Peterburg the effectiveness of debt restructuring for private individuals

In February 2021, VEB.RF initiated bankruptcy proceedings against the St. Petersburg billionaire Alexander Yebralidze. The state corporation is trying to recover RUB 34.1 bn from the entrepreneur on loans in which he acted as guarantor. In April this year the Commercial Court of St. Petersburg and the Leningrad Region initiated restructuring of the businessman’s debt.

As Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, told the Delovoy Peterburg newspaper, “restructuring debts of individuals is very rarely successful, as are rehabilitation procedures in corporate bankruptcies”.

According to the expert, in 2017-19, the successful exit from restructuring was about 3% of the number of initiated procedures. Today, however, the situation has worsened. “A debt restructuring plan is approved in about 1% of single-name procedures,” Sergei clarified.

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