RESTRUCTURING IS PREFERABLE TO THE SALE OF PROPERTY

In the framework of the insolvency case (No. A41-71214/20), the courts considered the issue of introducing bankruptcy proceedings against the debtor.

The courts of two instances approved the restructuring plan based on its economic feasibility.

The cassation sent the dispute for reconsideration and noted that the courts had not given a legal assessment to the creditor's argument about the possibility of fully satisfying all claims against the debtor as a result of the sale of his property, the value of which significantly exceeds the total amount of claims included in the register, despite the fact that, by virtue of this rule, this argument is crucial when approving the restructuring plan in court I'm fine.

The Supreme Court upheld the acts of the courts of first instance and the appellate instances, guided by the fact that the restructuring plan submitted by the debtor for approval provides for the satisfaction of creditors' claims included in the register of creditors' claims in full, while 60% of the debt is immediately repaid at the expense of funds deposited by the court.

The economic justification of the plan regarding the procedure for repayment of the remaining debt by creditors was not questioned.

Under such conditions, the courts of first instance and the courts of appeal correctly concluded that there were provided grounds for approving the debt restructuring plan in the absence of approval by the creditors' meeting.

At the same time, the restructuring plan proposed by the debtor, assessed by the courts of first and appellate instance as economically justified, also assumed full repayment of the claims of the specified collateral creditor included in the register, that is, it did not worsen his situation compared with the liquidation procedure, meeting the principle of rehabilitation parity.