Russian companies continue to waive bankruptcy moratorium

Russian business is actively using the right to waive the moratorium on bankruptcy, established by the decision of the authorities since April 2022.  According to analysts, this may be explained by the desire of the majority shareholders to receive dividends in 2022.  As a rule, this is done by those companies whose financial situation is sufficiently stable, which allows them not to be afraid of initiating insolvency claims by creditors.

Rusbankrot has already announced the intention of a number of holdings and individual firms not to resort to the moratorium. The largest port of Primorye, a metallurgical plant in the Nizhny Novgorod region, the telecommunications operator ‘MTS’, the ‘Sibur’ group of companies, and the enterprises of the ‘Metalloinvest’ group refused to apply to the moratorium.

After some time, more well-known companies began to refuse the moratorium. This is evidenced by the messages published on the "Fedresurs" website. One of these firms is the "Rosseti" company. Its various business structures announced their refusal. First, information appeared from ‘Rosseti Kuban’, and a few days later an announcement from ‘Rosseti Center’ appeared.

This may mean that company owners do not want to miss the opportunity to receive dividends or buy back shares.

The ‘Beluga Group’ also decided to abandon the six-month ban for those wishing to initiate bankruptcy. As we know, the alcohol producer has not recently refused to pay dividends. According to the results of last year, the board of directors of the holding decided to accrue 47.24 rubles per ordinary share as dividends. Securities to receive them can be purchased until June 15, 2022.

Experts note that not only companies seeking to immediately pay dividends can refuse a bankruptcy moratorium. Many may cancel or delay such payments in order to achieve sufficient financial stability. For some companies, making payments now may not be possible due to the foreign location of the parent companies.

It is logical that in the current economic situation, business considers it appropriate to delay payments. But the owners of enterprises also do not want to give up their opportunity for six months. In addition, we should not forget about the reputational component, since waiving of the moratorium can often be symbolic and carried out in order to build shareholders’ confidence in the business.