Sergei Bakeshin has commented to the Novy Prospect on the seizure of accounts and property of former Sevkabel executives worth about 2.3 billion rubles
In November 2020 the Commercial Court of St Petersburg and Leningrad Region opened bankruptcy proceedings against Sevkabel, a major St Petersburg cable manufacturer. The company acted as a guarantor on billion-dollar loans of the Rosscat holding company, of which it was a part and which was declared insolvent last spring. At the end of February 2021 Sevkabel’s creditors’ meeting was held. Where the question of organizing further business activities of the debtor was discussed. However, it was not decided, as the only participant of the meeting with voting rights gave the bankruptcy manager a blank ballot.
“Judging by the other decisions of the creditors’ meeting and the promptness of the actions of the bankruptcy manager it can be assumed that he and the creditor-applicant want to conduct the procedure more quickly, including selling the debtor’s property and distributing the proceeds among the creditors. In particular, the manager has already applied to contest the transactions and bring the controlling persons to subsidiary liability,” Sergei Bakeshin, head of dispute resolution and insolvency practice at Maxima Legal commented for the Novy Prospect online publishing.
According to the expert, there is only 5% of bankruptcy proceedings which end relatively well for a debtor. “In respect of Sevkabel a decision has been taken to liquidate, so its chances of continuing operations are even lower,” Sergei added.