25.01.2022 | News
Dispute on Challenging Transactions Worth Over RUB 6 Billion

BGP Litigation represented the interests of a bankruptcy receiver in a bankruptcy case against a developer of a premium class residential complex in Moscow. The bankruptcy receiver filed a claim challenging 111 work completion certificates (KS-2 forms) issued between 2010 and 2019 under the general construction contract. The case files exceeded 650 volumes. OBGP Litigation Bankruptcy practice succeeded in convincing the court of first instance that the disputed transactions were non-arm’s length transactions and declared invalid the certificates (KS-2 forms) issued during the year preceding the institution of the bankruptcy case, ordering the recovery of more than RUB 300 million from the party to the disputed transaction. In the court of appeal, our lawyers also managed to prove that the general contractor had been aware of the debtor’s insolvency, which means that there were grounds for invalidating all the work completion certificates in question.

As a result, the court of appeal changed the ruling of the court of first instance and ordered the general contractor to compensate the difference between the price paid for the works and their market value in the amount of RUB 1.28 billion.