The second annual conference: Bankruptcy in Russia. Practice and Techniques of Bankruptcy
Speaking engagement
Sergey Lisin BGP Litigation counsel
16.09.16
Organizer: Vedomosti
Location: Moscow, Marriott Royal Aurora Hotel
Topic / Program: Distortion of the Idea of Disputing Transactions of Debtors (Bankrupt Parties) in the Case Law
Registration / Information: http://info.vedomosti.ru
Presentation

The presentation Sergey Lisin gave was based on a complex and unusual situation handled by BGP Litigation. 

He pointed out that the only idea behind (rationale for) disputing such transactions is in order for the creditors to recover 100% of the amounts claimed from the debtor. He explained the essence of the problem, as a result of which creditors' claims are not settled and instead opportunistic assignees gain substantial wealth through shadowy arrangements. 

The BGP Litigation counsel noted three areas in which the idea of disputing transactions of debtors (bankrupt parties) is distorted: 1) recovery of a greater amount under disputed transactions than the sum total of the list of creditors' claims; 2) allowing the sale "from out of the bankrupt's estate" of restitution claims under disputed transactions; 3) the impossibility of reviewing a judicial act on a disputed transaction when all creditors' claims are settled, and in certain other cases. 

In conclusion, he proposed a fair solution:
- no limit on the value of transactions that can be disputed; 
- a prohibition against selling restitution claims (either everything is transferred to the bankrupt's estate, or nothing); 
- a working procedural mechanism for reviewing judicial acts under which transactions have been ruled invalid (a possibility to "set aside the excessive" or to eliminate "imbalances"). 

The BGP Litigation counsel proposed alternatives for solving the problem: statutory amendments, and the issuance of clarifications by the RF Supreme Court.

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