Sergei Bakeshin has commented for the Novy Prospect on the bankruptcy case of the Lebyazhye poultry farm

The commercial court has introduced supervision the Lebyazhye poultry farm, which used to hold almost 50% of the meat chickens production segment. The procedure was initiated on the basis of an application of Torg VS LLC. However, a little later Torg VS LLC was replaced by Valentin Petrovich Zanin in the lawsuit to recover the debt from the poultry farm.

“Strictly speaking, the creditor in the bankruptcy case should also have been mr Zanin. The poultry farm had no debts to Torg VS LLC at the time of the bankruptcy petition, so the ruling on introducing supervision can be successfully appealed,” Sergei Bakeshin, Head of Maxima Legal dispute resolution and insolvency practice, explained the Novy Prospect online publishing.

It should be noted, that production at the poultry farm has been mothballed since 2018. The owner of the enterprise made unsuccessful attempts to sell and bankrupt it, and also planned to repurpose it into a logistics complex. 

“A sale or any other active actions with the debtor’s property can only be started after the transition to the next bankruptcy procedure, i.e. not earlier than six months from now. On the whole, bankruptcy proceedings, in the most favourable case scenario, will take at least a year or even a year and a half. And if there is a clash of interests of the debtor and different creditors, the procedure can take 3-5 years or even longer,” said Sergei Bakeshin.

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