The Company Can No Longer Meet Its Obligations
There is not enough money to pay creditors, taxes or counterparties, and the legal consequences of the company’s next steps need to be understood.
BUSINESS BANKRUPTCY
Corporate Bankruptcy
We handle corporate bankruptcy matters for debtors and creditors. We analyze the company’s financial position, creditor claims, transactions and related risks, and represent clients in Russian commercial courts and separate disputes arising within the bankruptcy case.
WHEN YOU MAY NEED A LAWYER
What Happened?
A Creditor Is Threatening Bankruptcy Proceedings
A bankruptcy petition has been received, or you have learned that a creditor intends to initiate bankruptcy proceedings against the company.
You Need to Determine Whether the Debtor Must File for Bankruptcy
The company’s financial position has deteriorated, obligations are accumulating, and management needs to assess whether the statutory grounds for filing a bankruptcy petition have arisen.
A Creditor Wants to Initiate the Debtor’s Bankruptcy
Ordinary debt recovery is not producing a result, and it is necessary to assess whether bankruptcy proceedings are an appropriate way to protect the creditor’s interests.
There Is a Dispute Over Claims in the Creditor Register
A claim needs to be included in the register of creditor claims, or an unjustified claim by another creditor needs to be challenged.
The Company’s Transactions Are Being Challenged
Claims have been brought in the bankruptcy case seeking to invalidate a transaction and recover property or funds.
There Is a Risk of Claims Against Management or Owners
The actions of controlling persons, the company’s documents and bankruptcy-related risks need to be assessed before they become a separate dispute.
Bankruptcy Proceedings Are Already Underway
A bankruptcy procedure has already been introduced, but the interests of the debtor, owner or creditor still need to be protected in the main case and related separate disputes.
Nikolay NemkovManaging Partner, Konsultant Law Firm
Managing Partner’s Commentary
Nikolay Nemkov on Corporate Bankruptcy
Why corporate bankruptcy requires assessing not only the amount of debt, but also creditor claims, company transactions, assets and the actions of controlling persons.
Key Points
- 01What stage the situation is currently at
- 02Who is initiating the proceedings and for what purpose
- 03Which transactions, assets and claims require separate analysis
STRATEGY
First Understand What Bankruptcy Will Change
Corporate bankruptcy affects more than the company’s outstanding debt. The proceedings change how creditor claims are satisfied, what happens to company assets and earlier transactions, and how the conduct of controlling persons is assessed. Before taking procedural action, the objective and the principal risks therefore need to be identified.
01
Role in the Proceedings
We determine whose interests we are protecting: the debtor, the owner or a creditor.
02
Financial Position
We analyze the company’s obligations, the composition of its creditors and the key circumstances of insolvency.
03
Transactions and Assets
We review significant transactions and assets that may become the subject of disputes in the bankruptcy proceedings.
04
Procedural Route
We determine what needs to be done now in the main bankruptcy case and in related separate disputes.
What Corporate Bankruptcy Legal Support Includes
Analyze the Company’s Position
We review the debt structure, pending court cases, enforcement proceedings, assets and key documents.
Assess the Legal Position
We determine the grounds for applying to court, possible bankruptcy scenarios and the principal risks.
Prepare the Petition and Procedural Documents
We prepare documents for applying to a Russian commercial court or for protecting the client’s position in an existing bankruptcy case.
Work with Creditor Claims
We represent the client when claims are included in the creditor register and when objections are considered against claims filed by other participants.
Separate Disputes Within the Bankruptcy Case
We represent the client in disputes involving transaction challenges, property and other claims arising within the bankruptcy case.
Support the Bankruptcy Proceedings
We participate in court hearings, prepare applications, objections and motions, and monitor legally significant stages of the case.
Court Practice
Results in Real Cases
RUB 3,938,309.80
Court admitted our client’s RUB 3.94 million claim in the debtor’s bankruptcy
Following the introduction of supervision in the debtor’s bankruptcy, we filed the client’s claim within the time limit. The court admitted RUB 3,938,309.80 in the third priority of the register of creditors’ claims.
RUB 15+ million
Protected More Than RUB 15 Million in a Transaction Challenge Dispute
We kept more than RUB 15 million in the client’s possession in a dispute seeking to invalidate transactions within bankruptcy proceedings.
RUB 7+ million
Prevented a Claim Exceeding RUB 7 Million from Being Added to the Creditor Register
We prevented an unjustified claim exceeding RUB 7 million from being included in the register of creditor claims.
RUB 900,000
Purchased Nine An-24 Aircraft in Bankruptcy Proceedings for RUB 900,000
Nine An-24 aircraft were acquired for RUB 900,000 through bankruptcy proceedings.
View All Cases
Konsultant Law Firm
The firm has been practicing since 2007. We handle litigation and complex legal matters for businesses in Krasnoyarsk, Moscow and other regions of Russia.
Since 2007
in legal practice
1,000+
court proceedings
Across Russia
Krasnoyarsk • Moscow • other regions
Bankruptcy Is More Than a Way to Close a Company
As bankruptcy proceedings develop, the rules for protecting the interests of the debtor and creditors change. Claims are considered within a special statutory procedure, transactions may become the subject of separate disputes, and management decisions are assessed in the context of insolvency.
The purpose of legal support is therefore to understand the consequences of each procedural step in advance, rather than simply take the company to the formal end of the proceedings.
How We Start Working on the Matter
01We Receive the Documents
Information about debts, creditors, court disputes, enforcement proceedings, assets and significant transactions.
02We Determine the Client’s Position
Debtor, owner or creditor — the client’s role determines the objective and the strategy for further work.
03We Assess the Risks
We review creditor claims, transactions, assets and circumstances relating to the actions of controlling persons.
04We Develop the Action Plan
We determine the necessary procedural steps in the main bankruptcy case and any potential separate disputes.
Initial Legal AssessmentLegal consultation with review of the matter — from RUB 5,000
MANAGING PARTNER
Konsultant Law Firm Lawyers
Managing Partner, Konsultant Law Firm
Nikolay Nemkov
More than 20 years of practice in complex property and corporate disputes. Practicing insolvency practitioner.
Corporate Bankruptcy Questions
When is a company director required to file for bankruptcy?
The obligation does not arise merely because the company has a debt. It arises in the circumstances expressly provided for by Article 9 of Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”. This includes, among other circumstances, a situation in which paying some creditors would make it impossible to perform obligations to others. When the filing obligation arises, the debtor’s petition must be submitted to the Russian commercial court as soon as possible, but no later than one month. The exact point at which the obligation arises must be determined from the company’s actual financial position.
Who can initiate the bankruptcy of a legal entity?
Bankruptcy proceedings may be initiated by the debtor itself, a bankruptcy creditor, an authorized public body and other persons in cases expressly provided for by law. The existence of a debt alone does not mean that a particular petition will be found justified: the court verifies whether the statutory conditions are met.
What procedures can apply in a company bankruptcy?
Russian bankruptcy law provides for supervision, financial rehabilitation, external administration, bankruptcy liquidation proceedings and a settlement agreement for legal entities. Which procedure applies, and in what sequence, depends on the circumstances of the particular case and any special rules applicable to the relevant category of debtor.
Does filing for bankruptcy mean the company is immediately liquidated?
No. Filing a petition with a Russian commercial court does not itself result in the automatic liquidation of the legal entity. The court considers whether the petition is justified and determines the further procedure. The consequences for the company depend on the stage of the case and the court decisions made.
What happens to creditor claims?
Creditor claims in bankruptcy are considered under special statutory rules. For some claims, inclusion in the register of creditor claims, the amount, legal basis and priority of the claim are important. If another creditor’s claim is unjustified or its amount is disputed, objections may be filed in accordance with the prescribed procedure.
Can the company’s transactions be challenged in bankruptcy?
Yes. Russian bankruptcy law provides special grounds for challenging a debtor’s transactions. However, the fact that a transaction was completed before bankruptcy does not automatically make it invalid. The relevant factors include the circumstances and timing of the transaction, its terms, the parties involved and the legal grounds relied upon by the applicant.
Does a company’s bankruptcy automatically make its director or owner subsidiarily liable?
No. A legal entity’s bankruptcy does not by itself mean that the company’s debts are automatically recovered from its director or owner. Subsidiary liability is considered only where the statutory grounds exist and requires an assessment of the specific acts or omissions of the controlling persons. This is a separate area of legal defense.
Let Us Review the Company’s Bankruptcy Situation
Describe the company’s position, the amount and nature of its principal debts, which creditors have already applied to court, and whether a bankruptcy procedure has been introduced. If the case is already pending, include the case number and the current stage.