Westside law firm managed to protect interests of an investment company in a dispute involving the State Deposit Insurance Agency

The State Deposit Insurance Agency filed a claim to annul a transaction made by a bankrupt-bank. The transaction was about assignment of bank claims against several borrowers and was made within four days prior to temporal administration appointment. The claims (which were equal to RUB 130 Million in total) were assigned by the bank almost at half the price, which, in the opinion of the State Deposit Insurance Agency, constituted unequal consideration.

The claims (which were equal to RUB 130 Million in total) were assigned by the bank almost at half the price, which, in the opinion of the State Deposit Insurance Agency, constituted unequal consideration. Moreover, the State Deposit Insurance Agency insisted that the transaction challenged constituted transaction with unfair preference. The first-instance court agreed with the State Deposit Insurance Agency’s arguments.

Westside lawyers, which intervened at the stage of appellate proceedings, managed to convince the appellate court that unequal consideration and unfair preference have not been proven. The appellate court stated the following: the fact that the claims assigned by the bank exceed the sum paid for such assignment does not necessarily evidence the unequal consideration. Moreover, unfair preference may take place only in case the bank was insolvent as of the date of the transaction, which must be substantiated by the State Deposit Insurance Agency. However, the State Deposit Insurance Agency failed to substantiate such facts.