24.01.22

Advocates Bureau Yug Successfully Defended a Major Russian Businessman in his Own Bankruptcy Case

Advocates Bureau Yug Successfully Defended a Major Russian Businessman in his Own Bankruptcy Case

ABYs client is a major Russian businessman, residing in Krasnodar region and managing contractor activity at repairing petroleum pipelines and relevant infrastructure. In 2015 the client got into the corporate conflict with his former business partner which caused him to leave Russia. Later the tax inspection took place and revealed a number of unprofitable transactions, carried out by the client and his business partner. Meanwhile, the client’s business partner filed a claim into the Krasnodar Region Commercial Court on behalf of the company in order to recognize the client as a bankrupt and recover loss of 5.4 billion RUB, which the company, allegedly, suffered due to the clients management.

The Krasnodar Region Commercial Court fully satisfied the claim.

We took the case during appeal proceedings. We managed to prove an appeal court that the Company was managed jointly by the client and his business partner and, therefore, both shareholder can recover no losses of the Company from each other. The appeal court agreed with our arguments and reduced the amount of the clients liability from 5.4 billion RUB to 300.000 RUB.

Our opponents filed a cassation appeal against the appeal courts ruling. We participated in the court hearings in the Commercial Court of the North Caucasus District. The District Court agreed with ABYs legal position and upheld the appeal decision.

Managing partner Yuri Pustovit and Senior associate Sergey Radchenko represented the clients interests in the court of cassation.

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