THE SUPREME COURT OF RUSSIA NAMED THE CONDITION OF DISPUTING THE ADDITIONAL AGREEMENT IN BANKRUPTCY

The company entered into a surety agreement with the bank, subsequently the lender demanded early repayment of the loan, but neither the borrower nor his guarantor fulfilled this condition.

After that, a monitoring procedure was introduced in relation to the guarantor, during which he signed a document on amending the loan agreement.  Subsequently, the guarantor was declared insolvent by the court, and the bankruptcy proceedings were launched.

As part of the insolvency case of the guarantor, the bank's claims were included in the list of the creditors’ claims.

However, another bankruptcy creditor of the company considered that the new version of the loan agreement entails more obligations of the guarantor and violates the rights of other creditors, which prompted him to challenge the document in court.

The opinions of the lawyers divided, but the Supreme Court put an end to the matter.

The board pointed out that the new loan agreement extended only the loan repayment period, but the amount remained the same.

In this regard, the court did not establish the fact of an increase in obligations under the loan agreement after the parties signed an updated version of it. 

The Economic Board recalled that the right to challenge the transaction occurs in a situation when there is an imbalance between the bankruptcy creditors and the counterparty of the debtor under the transaction, while the latter receives what the former expected to receive (determination No. 305-ES20-4643 (2) dated October 12  2020).