Sergei Bakeshin commented for Mashnews on the dispute between companies related to Alexander Yebralidze

Europe’s largest producer of glued laminated timber, “Sovremennye Tekhnologii Obrabotki Drevesiny” LLC (STOD), is demanding the invalidation of three transactions with the company “Talion” JSC worth more than RUB 27 bn. Both companies, as well as their beneficiary – St. Petersburg billionaire Alexander Yebralidze – are in bankruptcy proceedings. The businessman and “Talion” have already been declared insolvent, and external management has been introduced at the STOD plant.

Sergei Bakeshin, Counsel, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, explained to Mashnews that if the transactions are recognised as invalid, the external manager of STOD will have to apply to the court within the framework of the bankruptcy case of “Talion” to include the claim in the register of creditors’ claims of “Talion”. Given the affiliation of the companies, the court, when considering this application, may conclude that this claim was so-called “compensation financing” and downgrade the priority of its satisfaction.

“In such a case, STOD will be able to expect to receive money only after the claims of all independent creditors have been satisfied, that is, approximately never,” the expert specified.

Sergei suggested that the purpose of the requirements of the company “STOD” may be more likely to obtain a majority of votes of creditors “Talion” and to establish control over the procedure of its bankruptcy.

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