Bankruptcy-2021: Regulation and Case Law - Pravo.ru Annual Conference
This year, experts anticipated a ‘tsunami’ of bankruptcies, which was supposed to wash away a third of Russian companies. Their ‘weather forecast’ did not come true. But some ‘climatic’ surprises still happened: there was a wave of disputes on the replacement of the debtor's only home and a downpour of invalid transactions. Key court decisions were discussed by the participants at the Pravo.ru bankruptcy conference.
A transaction made in course of the debtor’s normal business activity may not be challenged. Julia Shilova, Head of the Restructuring and Bankruptcy Group at ART DE LEX, shared her unusual case (No. A70-8365/2019) at the conference. Normal business activity is one that does not differ in its terms from similar transactions repeatedly made by the debtor. The settlement agreement was concluded when some delays already happened. ‘One wouldn’t believe any normal business activity turns up here’ began Shilova. It was found out that long before the bankruptcy, the debtor concluded more than 70 settlement agreements. So it's just a normal thing for him. This means that settlement payments during delays may be recognized as normal business activities.