There was a precedent for the bankruptcy of a foreign company

There was a precedent for the bankruptcy of a foreign company.

The Russian Arbitration Court found a way to bankrupt a foreign company, at least partially, Oleg Zaitsev found the case. The Arbitration Court of the Chelyabinsk Region extended the jurisdiction of Russian bankruptcy courts to the island state of Saint Kitt and Nevis. The company registered there was declared bankrupt due to the fact that the close connection of the debtor with the Russian legal order was taken into account, the procedure was introduced in relation to property.

The court found that the sole participant and head of the foreign company is a Russian citizen. In connection with the opening of a current account, the company was registered in Russia. The organization was engaged in collection activities on the territory of the Russian Federation, appearing in a number of bankruptcy cases. In this connection, she had a debt to the bankruptcy trustee in the amount of more than a million rubles, which was collected (there are decisions that have entered into force, writ of execution has been issued). The debtor has an asset in the form of accounts receivable from Russian debtors.

The debtor was represented at the court session by a single participant, he referred to the exclusion of the company from the trade register of a foreign state, deregistration in the Russian Federation, which in fact indicates, in his opinion, the liquidation of the legal entity. As an additional reason for dismissing the case, he cited arguments for a moratorium on bankruptcy.

The court did not agree with the fact that the company was liquidated, and cited the norms of the Law on Companies of the Island of Nevis as justification (this normative act provides for the possibility of filing claims within 3 years from the date of termination of the legal entity's activity, the company is considered to exist during this period).

The court also considered that the absence in the Arbitration Procedure Code of the Russian Federation and in the Bankruptcy Law of a direct reference to the competence of Russian arbitration courts to conduct bankruptcy of foreign legal entities is not an obstacle to the introduction of a procedure in relation to the property of a foreign company located in the Russian Federation in order to fully satisfy the interests of creditors. To the contrary would lead to a significant decrease in the effectiveness of the Russian court, the decision states.

The court also considered it possible to apply by analogy the general rules governing the bankruptcy procedure in the Russian Federation (the possibility of initiating proceedings in the presence of debt and establishing the fact that it is impossible to satisfy it).

The court refused to apply the moratorium, since the case was initiated before its introduction. The foreign company was declared bankrupt, bankruptcy proceedings were immediately introduced against it.

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