An Insolvent Year: How the Bankruptcy Practice in St Petersburg Has Changed

26 November 2020

The year 2020 has added a lot of new interesting cases in the bankruptcy practice. They are not caused solely by COVID-19.

Irina Serova, the head of the St Petersburg regional office of Khrenov&Partners, finds the Supreme Court ruling on the bankruptcy of UGMK-Rudgormash CJSC an important one. “It is an opportunity to invoke secondary liability against the company that was in fact receiving profits from debtor’s operations”.

According to Irina Serova, the number of individual insolvencies rose significantly in 2020. She believes that this increase is caused not only by the fact that individuals can’t cope with loan burdens but also by the expansion of secondary liability. The number of persons that can be brought to secondary liability is growing, and as result, there are more bankruptcies among business people, shareholders, top managers of companies, and the sums that courts recover from them are quite large.

The full article may be viewed here (in Russian). 
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