THE SUPREME COURT DEALT WITH THE ECONOMIC FEASIBILITY OF A SETTLEMENT AGREEMENT IN BANKRUPTCY

As part of the debtor's bankruptcy case, a settlement agreement was approved between the debtor and creditors. Based on the terms of the agreement, the claims of some creditors were repaid by the debtor at the expense of cash, the remaining claims were repaid by transferring the unfinished construction object to creditors with the transfer of funds in favor of the debtor in the amount of the difference between the cost of the object and the creditors' claims.

The courts of two instances approved the settlement agreement, guided by the fact that it was approved by the meeting of creditors of the debtor and economically justified.

At the same time, the courts noted that the funds that will come from creditors in accordance with the terms of the settlement agreement will be enough to settle with all creditors of the debtor. After the execution of the settlement agreement, the debtor will have property to continue economic activity.

The Supreme Court of the Russian Federation sent the dispute for a new consideration and pointed out the following circumstances:

"The conclusion of the disputed settlement agreement was aimed at withdrawing the debtor's only liquid asset in favor of creditors, bypassing the bidding procedure.

The transfer to creditors of an object of unfinished construction, taking into account the above circumstances, would lead to the impossibility of the debtor continuing economic activity, that is, the consequence of the approval of such an agreement was the actual liquidation of the debtor.

In addition, the asset was transferred to creditors with an understatement of its value, which also indicates the economic inexpediency of the settlement agreement."