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 in Practice
Frequently Asked Questions About Corporate Bankruptcy in Russia
Practical answers for directors, owners and creditors dealing with corporate bankruptcy proceedings in Russia.
Who can initiate corporate bankruptcy proceedings in Russia?
Corporate bankruptcy proceedings may be initiated by the debtor itself, a creditor or an authorized body in cases provided by law.
The applicant must meet legal requirements and provide the necessary documents.
The strategy depends on who files the application: the debtor seeking to resolve financial problems or the creditor seeking to protect its rights.
What happens after corporate bankruptcy proceedings begin?
After bankruptcy proceedings are initiated, the court establishes the applicable procedure and appoints an insolvency administrator where required by law.
During the proceedings, the company’s financial condition is analysed, creditors’ claims are registered and issues related to the debtor’s assets are addressed.
The specific consequences depend on the type of procedure and the circumstances of the case.
Is an LLC director personally liable for company debts?
As a general rule, an LLC is responsible for its own obligations.
However, in cases established by law, a director or another controlling person may be held liable under subsidiary liability rules.
Liability requires proof of legal grounds and cannot be based only on the fact that a person held the position of director.
Can a business survive corporate bankruptcy proceedings?
Depending on the circumstances, bankruptcy does not always mean that business activity must end.
Legal procedures may provide options aimed at restoring solvency or otherwise resolving financial difficulties.
The appropriate strategy depends on the company’s financial condition, debt structure and objectives of the participants.
What should a creditor do if the debtor is in bankruptcy?
A creditor should timely submit its claims and monitor the progress of the proceedings.
It is important to assess not only inclusion of the claim in the register but also the debtor’s assets, actions of participants and possible ways to protect creditor rights.
The strategy depends on the specific circumstances and available evidence.
When does subsidiary liability risk arise in bankruptcy?
Subsidiary liability risk may arise where there are grounds to connect the debtor’s inability to satisfy creditors with the actions or omissions of controlling persons.
Risk assessment requires analysis of company documents, transactions, financial condition and bankruptcy circumstances.
Does a company need a lawyer during corporate bankruptcy?
Corporate bankruptcy involves numerous procedural actions, documents and legal risks.
A lawyer may help assess the situation, determine strategy, prepare documents and protect the interests of the participant in the proceedings.
The need for legal support depends on the person’s role and the complexity of the case.
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.