THE BANKRUPTCY PROCEEDINGS OF THE PEUGEOT’S DEALER WERE COMPLETED IN YEKATERINBURG

The bankruptcy proceedings of the UralFransAuto Company are over. The company initially acted as an official dealer of the French automobile brands Peugeot and Citroen, operating on the market of Yekaterinburg.

The bankruptcy results were not very encouraging - the company managed to satisfy the appetites of the creditors by less than a third. Debts in the amount of 387 million rubles were paid, while the entire amount of claims for obligations amounted to 1.35 billion.

UniCredit Bank started to drive the company to bankruptcy back in 2015.

The reason for the bank's appeal to the court was a debt exceeding 290 million rubles. More than 152 million rubles of the total amount were secured by a pledge of the company’s property. As a result, the dealer was declared insolvent in 2016, and its co-owners went through the personal bankruptcy proceedings, as they were guarantors of the loan agreements concluded with the company.

The UralFransAuto Company belonged to Grigory Balakin and Sergey Kretov. Another founder was Alexander Ivanskoy, who did not act directly, but through the legal entities.

According to Balakin, the reason for the bankruptcy was the economic crisis in Russia, for which the French car manufacturers were not prepared.

As a result, the desire to continue to be engaged in the sale of the French brands cars has disappeared among the entrepreneurs.

The principal amounts on the accumulated liabilities were received by the creditors of the first priority - the company paid them 384.8 million rubles, which amounted to 75.38% of the total volume of the priority claims specified in the register. Moreover, the debts to the participants of the second priority, amounting to 1.3 million rubles, were fully paid. The claims of the third-priority creditors were paid only by 0.8%, which amounted to 1.1 million rubles.