13/03/2024, the court of appeal in the framework of the bankruptcy case of the L&P principal company, with the participation of Tatyana Tsepkina as a representative of the debtor, overturned the decision of the court of first instance and approved the settlement agreement between the debtor and the bankruptcy creditors. The result of the decision is a successful debt restructuring amounting to several hundred million rubles.
The outcome of the trial was determined by a combination of two key factors that allowed the court of appeal to fully implement the principle of peaceful settlement of the bankruptcy case upon reconsideration of the case. Firstly, the terms of the settlement agreement provided the debtor with the opportunity to continue business activities with full preservation of his property and jobs, and, secondly, the settlement agreement approved by the creditors’ meeting provides for quite clear and definite conditions on the repayment terms for all bankruptcy creditors. Consequently, the settlement agreement was approved, and the proceedings were terminated.
Commenting on the successful outcome of the case, the head of the Bankruptcy and Subsidiary Liability practice, Tatyana Tsepkina, noted: “Approving the settlement agreement, the panel of judges of the Court of Appeal quite logically and reasonably acted in the spirit of the practice of the Supreme Court of Russia, which previously noted that, unlike bankruptcy proceedings, in which the debtor’s property is sold with the subsequent termination of its existence as a legal entity, a settlement agreement in the framework of a bankruptcy case is among the rehabilitation measures, providing the debtor with the opportunity to resume its business activities. Thus, our principal has been given a chance to continue his activities by securing an appropriate agreement with creditors.”
