Bankruptcy of legal entity

Liquidation of legal entity because of insolvency is possible if the company is not able to pay off debts of 300 000 rubles or more and consists of the following procedures:

  • supervision procedure;
  • financial sanation;
  • external management;
  • bankruptcy proceeding;
  • settlement agreement.

Practically only supervision and bankruptcy proceeding are applied in most cases.

However, company’s activity before the first procedure is introduced is very important for subsequent proceedings as well as company’s activity after notification of its intention to file for bankruptcy.

If signs of insolvency are obvious, then creditor’s application is satisfied, and supervision procedure is introduced.

At the supervision stage, debtor’s financial condition is analyzed, creditors’ claims are established, and their first meeting is held. This stage must be completed within 7 months from the date of filing the claim. At the same time, after this procedure is introduced, penalties, fines and other sanctions are not accrued for non-compliance with monetary obligations and payments, except for current ones, payment of dividends, income as well as profit distribution between the founders are not allowed, and other consequences take place.

Having examined financial standing of the company, court most often concludes that company is insolvent and introduces bankruptcy proceedings. The main task of this stage is to satisfy creditors’ claims as much as possible. It is introduced for 6 months but can last for years. This often occurs due to unfair actions committed by participants of the process.

At this stage inventory and assessment of debtor’s property is carried out as well as its’ auctioning.

VALEN is highly experienced in the field of comprehensive support of business liquidation both on the side of debtor and on the side of creditor. Our specialists provide bankruptcy management services, starting from development of risk minimization concept and ending with representation in court.

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Leading Lawyers

Valentina Khlavich
Managing Partner
Denis Bondarev
Head of Operations
Irina Girgushkina
Head of legal
Dmitry Kofanov
Valentina Khlavich
Managing Partner

Law degree in the Russian Federation

Studied at the University of Passau, Germany

Foreign Languages: English, German

Since 2007 a lawyer in Beiten Burkhardt lawfirm

Since 2012 founder and managing partner at VALEN

Our specialists
Denis Bondarev
Head of Operations

Graduated from People’s Friendship University of Russia (RUDN)

Certified Lawyer in the Russian Federation, Master of law (International law)

Foreign languages: English

5+ years of legal experience in consulting  lawfirms and inhouse practices

Since 2023 —Director of Operations at Valen Group

Our specialists
Irina Girgushkina
Head of legal

Graduated Moscow State Institute of International Relations (MGIMO)

RANEPA at the President of the Russian Federation

Certified Lawyer in the Russian Federation, Master of Law (Corporate Law)

Foreign languages: English, French

4+ years in corporate law consulting

Since 2022 –Head of legal at Valen Group

Our specialists
Dmitry Kofanov

Certified Lawyer in the Russian Federation

Experience since 2003 – in Russian and foreign law firms

Since 2021 – partner at VALEN

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