Back to publication

Yulia Shilova comments for “The Lawyers Newspaper”: “The Supreme Court clarifies the procedure of selling premises co-owned by a bankrupt”

The Court held that the price of the debtor’s share in the ownership rights for non-residential premises must be determined in an open tender with the winner granting a pre-emptive right to the co-owner.


Yulia Shilova, an attorney of the ART DE LEX Business Restructuring and Bankruptcy Practice, notes that the pre-emptive right must be exercised after the tender, as a result of which the co-owner must be granted an opportunity to exercise his pre-emptive right for such property at the price offered by the winner. If the co-owner refuses, the agreement shall be made with the winner of the tender. “Any other application of the law would violate the principle of the objective of bankruptcy proceedings, i.e. maximum satisfaction of claims of the bankrupt debtor’s creditors”, she underlines.


The full version of the article is available here.