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
Thomas Relja
Eduard Ioffe
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
Thomas Relja

Economics Degree

Foreign Languages: Croatian, English

5+ years as a head of Accounting and Finance in European Companies

2+ years as a SAP consultant for companies in Germany (Munich) and UAE (Dubai)

Partner at VALEN

Our specialists
Eduard Ioffe

Graduated Moscow State Law Academy under name of O.E. Kutafin (MSAL) in 2012

Foreign languages: English, Latvian

Experience since 2012 – in legal consulting, banking, private equity and sports law.

Since 2021 – Head of legal in VALEN

Since 2022 – Partner/Head of legal in VALEN

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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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