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Liquidation and Bankruptcy
Liquidation of a legal entity is defined in the civil code of the Russian Federation as the cessation of business activity with no transfer of rights and liabilities to other entities.
There exist two distinct forms of Liquidation in the Russian Federation: forced or a free-willed order.
Liquidation is not simple, fast or easy. Regardless of which type of liquidation, legal representation can make this difficult situation end smoothly and legally with a minimum of cost and trouble.
If you choose a free-willed liquidation the following steps are necessary:
- Make a formal decision about liquidation of the company
- Appoint a liquidation committee
- Formally notify a state registration office
- Publish a public notice in the press office
- Determine a current asset balance for the companyreate
- Negotiate debt settlements with all creditors
- Determine a liquidation balance
- Close all company accounts
- Notify the Federal Tax Office that you have registered with the state for liquidation
All of these procedures are complicated and consume huge amounts of time and energy.
Alternative liquidation strategies exist that take less time. For example, you can have a liquidation sale of the entity to a third party of merge with a third party.
Bankruptcy
Bankruptcy is defined by the court as the inability of a debtor to pay creditors in full or previously agreed installment payments.
Bankruptcy has a number of processes:
- Activation of the bankruptcy. Bankruptcy begins with a petition of a creditor or creditors or a when the company declares itself bankrupt.
- Supervision
- Financial recovery
- Third Party administration
- Competitive production
- Reconciliation agreement
- Bankruptcy of separated categories of debtors
- Bankruptcy of financial organizations
Our Law firm ‘Varsavsky and partners’ is ready to provide qualified representation for any liquidation or bankruptcy at any stage in the process.
