Sergei Bakeshin commented for Kommersant on the bankruptcy of the Seven Suns structure

Commercial Court of St. Petersburg and Leningrad Region introduced a supervision procedure in Seven Suns Development SPb Vostok LLC (part of Seven Suns Development).
As stated in the court materials, in 2021 the Seven Suns structure agreed with Moscow Credit Bank (MCB) to open a credit line with a limit of RUB 4.5 bn. As a pledge the developer provided the credit organisation with land plots in Bugry settlement with a total area of 17.8 hectares. In 2024, Seven Sans Development SPb Vostok had overdue debts of RUB 900.4 m., after which MCB initiated bankruptcy of the company.
In court, the developer’s representative argued that the company owned land plots worth over RUB 5 bn, which the bank could foreclose on. The sale of the land will allow the company to fulfil its obligations to MCB.

Formally, the developer’s structure has not yet been declared bankrupt, but in practice, in most cases, supervision is followed by bankruptcy proceedings, Sergei Bakeshin, Counsel, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, explained to Kommersant. According to the expert, MCB, as a pledge creditor, has the right to determine the procedure for selling the land, and in certain cases it can keep it for itself.

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