EQUITY team achieves an important landmark victory in the Supreme Court!

EQUITY team achieves an important landmark victory in the Supreme Court!

The Commercial Cassation Court issued a judgment that upheld the key arguments of our client, the initiating creditor in the bankruptcy case of a company specialising in the wholesale trade of chemicals. This victory sets an important precedent for protecting creditors' rights.

The Supreme Court confirmed two crucial points that our team had emphasised:

• Disagreements over penalties do not prevent bankruptcy. Disagreements regarding the accrual of 3% per annum, inflationary losses and penalties do not constitute a «dispute of law», provided the principal debt is confirmed. Therefore, such disagreements cannot be grounds for refusing to open bankruptcy proceedings. This decision strengthens the position of creditors and simplifies access to bankruptcy proceedings for debt collection.

• Protecting companies in territories occupied after 24 February 2022! The Supreme Court has upheld our position that Ukrainian law «On Ensuring the Rights and Freedoms of Citizens and the Legal Regime in the Temporarily Occupied Territory of Ukraine» does not apply to companies that were registered in occupied territories after 24 February 2022. This prevents the fulfilment of obligations in their favour. This decision clearly indicates that the debtor's obligation to pay funds to these companies remains in force. Therefore, references to occupation as grounds for avoiding liability or objecting to the opening of bankruptcy proceedings are groundless.

Thanks to the professionalism and coordinated efforts of the EQUITY team, we were able to protect our client's interests fully and restore justice. We continue to work to strengthen Ukraine's legal system and economy! 

The legal team involved: Managing Partner at EQUITY - Oleh Malinevskyi, Counsel - Dmytro Tylipskiy, Senior Associate -Yaroslav Labatiuk, Attorney -Oleksii Kobal and Junior Associate - Denys Tuz.