Sergei Bakeshin analysed for Novy Prospect the attempt by the PESC to bankrupt a St. Petersburg manufacturer of meat products

An insolvency petition filed by St. Petersburg Power Supply Company (PESC) against Parnas-M, a large St. Petersburg producer of meat products, has been registered in the file system of arbitration cases. The reason is the debt for consumed electricity. The amount of claims in the statement is RUB 8.3 mn. In total, at the beginning of April the overdue debt of Parnas-M for electricity is RUB 41.7 mn (excluding charges for March).

As Sergei Bakeshin, Counsel, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, reminded Novy Prospect, Parnas-M has an old insolvency case in which a settlement agreement was approved in October 2022. It was concluded by the tax authorities, Modress LLC, which bought up the company’s debts earlier, and other creditors of the meat processor.

“Most likely, this settlement agreement has not yet been executed (it provided for a deferral for 5 years). If supervision is introduced in the new bankruptcy case, creditors from the old case will enter into it and it will not be possible to limit the repayment of debts to PESC,” the expert noted.

“If it is proved that the assets and business relations of the debtor were transferred to another company or that a scheme was built in which the debtor was the centre of losses and another company was the centre of profits, the other company may be held subsidiary liable,” Sergei explained.

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