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EQUITY lawyers have substantiated the refusal to initiate proceedings over the bankruptcy of Poltavkhimmash PJSC on the grounds of “a dispute over a right” and no signs of insolvency of the debtor.
The Commercial Court of Cassation sided with the debtor in the case of bankruptcy of Poltavhimmash PJSC and upheld the decisions of lower instances to refuse to initiate proceedings over the bankruptcy of Poltavkhimmash PJSC.
EQUITY lawyers substantiated the refusal to initiate bankruptcy proceedings on the following grounds: (1) the initiating creditor and the debtor had “a dispute over a right’ (2) the debtor did not meet the legislative definition of a legal entity that is unable to perform its monetary obligations to the creditor other than though respective bankruptcy procedures.
The Commercial Court of Cassation came to the following legal conclusions:
- having no dispute over the right within the bankruptcy procedure lies in the fact that there is no ambiguity as to determining the parties in the obligation, the essence (subject) of the obligation, grounds for origination of the obligation, the amount of the obligation, as well as the term of fulfillment of the obligation, etc.
- During preparatory hearings, a court of first instance may not decide such dispute over the right which, in its turn, is connected with peculiarities of the legal action such as filing a claim, possibility of filing a counter-claim, participants of a case, taking the claim for consideration and opening the proceedings as well as dispositive character of commercial proceedings, etc.
The EQUITY team made up of partner Oleg Malinevskyi, counsels Dmytro Tylipskyi and Oleksiy Stepanenko, defence lawyer Yaroslav Labatiuk, and junior associate Oleksiy Kobal have been working on the project of protecting interests of Azovmash Group.
EQUITY team continues contributing into development of new approaches in the field of bankruptcy and restructuring of problem indebtness!