ALFA-BANK INTENDS TO BANKRUPT THE CYPRIOT BENEFICIARY OF THE SVYAZNOY NETWORK

At the moment, the Svyaznoy Network is in the process of declaring it bankrupt, and now Alfa-Bank has announced its intention to send an application for the commencement of insolvency proceedings against the Svyaznoy beneficiary — DTS Retail LTD.

In March of this year, Alfa-Bank filed claims against the Cyprus company for more than 7.6 billion rubles, Kommersant reports. Experts confirm the probable success of Alfa-Bank, despite some difficulties with the start of the bankruptcy procedure of a foreign organization.

The owner of the prevailing part of the shares of Svyaznoy Network LLC — DTS Retail LTD has 69.25% of them — has already been sued twice, for 7.67 billion and 548 million rubles. The last Arbitration Court of Moscow on June 15 satisfied in full.

The materials of this case contain information that a contract on bank guarantees for 9 billion rubles was concluded between Svyaznoy and Alfa-Bank. Alfa-Bank has assumed responsibility for covering the transportation of Svyaznoy products. At the same time, the Cyprus company vouched for the refund of the money by a company controlled by it.

As part of the fulfillment of its obligations, Alfa-Bank has paid 2.92 billion rubles since April 2022. Samsung Electronics Rus Companies.

According to the case file, Alfa-Bank and Svyaznoy Network LLC signed an additional agreement giving Svyaznoy a deferral for debt repayment until March 2024. But the debtor has overdue the payment of the debt, which amounted to 548 million rubles. As a consequence of this fact, Alfa-Bank tried to recover the debt from DTS Retail. According to lawyers, it is much more profitable for a bank to initiate bankruptcy of a foreign organization in the Russian Federation financially and in time than to hire lawyers abroad.

In addition, first of all in Cyprus Alfa-Bank will need to recognize the decision made in the Russian court on debt collection.

However, in Russia, a foreign company must be in close contact with the state, conduct its main activities in the Russian Federation, own legal entities, bank accounts, and counterparties, which makes it difficult for a bankruptcy procedure against a foreign debtor. At the same time, most of the assets of DTS and its activities are firmly connected with Russia.