Sergei Bakeshin has commented for Novy Prospect on the winner’s challenge to the results of the auction for the sale of the bankrupt agribusiness enterprise’s property

In September 2022, A-Group, acting for Novosibirsk-based Agrarian Corporation Transagro, won an auction to sell the assets of Luzhsky Feed Mill as part of bankruptcy proceedings. However, the winner is now trying to invalidate the auction results in a court due to “violations of the rules established by the current legislation”, in particular, the agent’s offer of an uncoordinated price of RUB 350m. At the same time, according to Sergei Bakeshin, Senior Associate and Head of Dispute Resolution & Insolvency practice at Maxima Legal, the offered price was RUB 252.29m, according to reports on the Unified Federal Register of Bankruptcy Information and Alphalot trading platform.

“The price indicated everywhere was the price that suited the winning bidder and below which it was not allowed to go (cut-off price). Only in his statement the winning bidder points out that a higher bid was allegedly made,” explained the expert to Novy Prospect online publishing.

In Sergei`s opinion, challenging the results of the bidding may be an attempt to delay payment or delay the bidding process. “If so, the attempt so far has not been very successful, as the court has refused to apply interim measures in the form of a ban on the re-tendering and in the form of a suspension of payment obligations. I do not see any appeals against this court ruling, although the deadline for filing them has passed,” stressed Sergei.

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