Sergei Bakeshin has explained the specifics of debtor’s initiation of their own bankruptcy for the Novy Prospect
Rassvet, the only cattle fattening company in the Leningrad region, filed for bankruptcy. The enterprise has been steadily making losses over the last few years, and its owner, Rosselkhozbank, even with the support of the regional authorities, failed to find an investor willing to take over the business.
“In practice, a debtor files for bankruptcy when the task is to terminate an existing legal entity, but because of debts, it is impossible to do so through ordinary voluntary liquidation. In this case the termination of the legal entity can be done either by ceasing the business, or by transferring it to a new company”, Sergei Bakeshin, head of dispute resolution and insolvency practice at Maxima Legal explained for the Novy Prospect online edition.