Challenging the Debtor’s Transactions
ALRUD team has remarkable track record with disputes concerning the challenge of the debtor's transactions (claw back action). Over the past few years, the number of such disputes, as well as the percentage of sustained challenge applications has been constantly growing, which gives rise to serious risks for business within the framework of the current economic conditions and potential bankruptcy of counterparties.
Appreciating the difficulties that the international corporations and their Russian-based subsidiaries may experience, ALRUD is well placed to offer services specifically-tailored to the issues of challenging the debtor's transactions to minimize possible risks and ensure best possible outcome of litigation.
Our services
- Analysis of the claims on challenging of the transactions of the debtor, elaboration of strategy on mitigating the risks at the stage of transaction structuring.
- Representation of the client’s interests in the court proceedings on challenging the debtor’s transactions.
- Representation of the client’s interests in the parallel court proceedings in Russia and foreign jurisdictions on the cases of challenging the debtor’s transactions.
- Preparation of legal opinions on Russian bankruptcy law for foreign courts and arbitral tribunals on the issues of challenging the transactions within the bankruptcy proceedings.
- Assistance with criminal law aspects of challenging the transactions.
Highlights of recent domestic and international work
The Russian financial corporation
on the sale of an asset in the context of mitigating the risks of challenging transactions in case of bankruptcy of either party to the transaction or their parent companies.
A major state owned bank
on the bankruptcy risks of challenging transactions related to debt restructuring as part of a multibillion-dollar international infrastructure project in the Far East.
One of the largest Russian banks
on a dispute on invalidation of bank guarantees issued to secure transactions that turned out to be sham, including in the proceedings of a cassation appeal to the Supreme Court of the Russian Federation.
A subsidiary of an investment company of a top-5 bank in Russia
in a number of disputes related to the bankruptcy of a group of companies conducting one of the largest infrastructure projects in Eastern Siberia.
One of fuel companies
in the bankruptcy case of a large machine-building factory in Chelyabinsk region and in more than 15 interrelated disputes, including on challenging transactions in arbitrazh courts and courts of general jurisdiction.
A large Latvian bank
in a separate dispute on invalidation of a financial pledge agreement entered under foreign law with no comparable concept in Russian law.
A well-known international trader
in disputes on claims of the State Corporation Deposit Insurance Agency on invalidation of a number of transactions in the framework of the bankruptcy case of a credit organization.
A Russian subsidiary of a major European manufacturer of ceramics and plumbing equipment
in a separate dispute on challenging a transaction in relation to a property complex used in the client's main production activities.
