KURGANSTALMOST IS TRYING TO GAIN CONTROL OVER THE BANKRUPTCY OF KST COMBINE

The flagship of the trans-Ural construction industry, the Kurganstalmost company, is actively trying to gain control over the bankruptcy process of the associated frame-building technologies plant (KST). In August of this year, the Arbitration Court introduced bankruptcy proceedings under the CST (case no. A34-1109/2023). The company of the Paryshev family (owners of Kurganstalmost) has applied to participate in this case, involving a number of third parties associated with the company.These plans are being opposed by the Federal Tax Service, which initiated the bankruptcy of the KST in February 2023. The fiscal officers provided the court with detailed explanations confirming the interconnection of the companies and demonstrating Kurganstalmost's awareness of the financial difficulties of the combine. These arguments are supported by independent creditors claiming a share in the third stage of payments.

The observers' interest in this case was caused by the fact that Kurganstalmost allegedly uses the bankruptcy procedure of KST to control the asset. This debt, according to the company, was formed as a result of the execution of about 20 contracts. A significant part of the contracts was related to the construction of the trans-Ural kindergartens. Although the plant increased revenue until 2021, its financial situation has deteriorated since 2022: numerous lawsuits followed the delay in payment of salaries.

The court drew attention to the request of Kurganstalmost to include it among the creditors of the KST. As indicated in the documents, the plant owned equipment leased from Kurganstalmost and its affiliated structures. The founders of the plant included representatives of the Paryshev family. The property used by the combine also belonged to the structures associated with them.

The Federal Tax Service believes that such a management structure allows controlling the asset by forming artificial centers of losses and profits within the group, which harms the interests of independent creditors. The fiscal officers pointed out that the activities of the KST were initially unprofitable, which was known to all the companies affiliated with it. This unprofitability, according to the Federal Tax Service, was achieved due to "hidden compensatory financing" and non-collection of rent from affiliated persons, which allowed artificially supporting the activities of the plant.

The Federal Tax Service also recalled that this is not the first time when the tax service pays attention to the activities of Kurganstalmost. Even during the construction of arenas for the 2018 World Cup, including Rostov Arena, the company attracted attention with questionable equipment supply schemes. At the same time, the Federal Tax Service recorded a significant margin on products, which, according to the service, were withdrawn through chains of firms.

Currently, representatives of the Paryshev family and other members of the group remain key figures in the KST bankruptcy case. The consideration of a separate dispute in this case will continue in November, and the result may affect not only the outcome of the bankruptcy, but also the future of Kurganstalmost's assets.