GRATA International (Rostov-on-Don) experts successfully defended a client's interests in a complex bankruptcy case involving a developer.

GRATA International (Rostov-on-Don) lawyers successfully defended a client's interests in a complex bankruptcy case involving a developer (Case No. A53-16249/2021).

Previously, the client had transferred its land plots to the developer for the construction of an apartment building, with the subsequent receipt of premises as consideration. The project was structured through a lease agreement with payment in the form of real estate and an equity participation agreement, under which the obligations were terminated by way of a set-off of reciprocal claims. As a result, the client received 3,500 sq. m. of non-residential premises with a current value of approximately RUB 210 million.

After the developer’s bankruptcy proceedings were initiated, the insolvency administrator attempted to challenge the transactions and return the premises to the bankruptcy estate.

The team conducted extensive work: developed a legal strategy, prepared numerous procedural documents and expert appraisal report reviews, and successfully arranged for an expert of our choosing to carry out a forensic examination. In court, we were able to prove the absence of grounds for invalidating the transactions, including lack of unequal consideration, absence of affiliation between the parties, and lack of evidence that the debtor was insolvent at the time the transactions were concluded.

The court of first instance rejected the claims. Despite the appellate court reversing the decision, the court of cassation upheld our position and affirmed the ruling of the first instance. The Supreme Court of the Russian Federation refused to transfer the cassation appeal for review.

The dispute, which lasted over three years, was resolved in the client’s favor.