The Firm

Case Overview:

The bankruptcy trustee filed a claim challenging a set-off agreement concluded by the debtor shortly before bankruptcy and sought the application of the consequences of its invalidity.

Scope of Services

The defendant (the other party to the transaction) prepared and submitted the following documents to the case file:

• objections to the claim;
• objections to the trustee’s written position;
• written explanations.

In these documents, the defendant set out evidence of its own good faith when entering into the set-off agreement, as well as arguments demonstrating that the agreement was beneficial not only to the defendant but also to the claimant (the future debtor).

Significance and Results for the Client

This case became precedent-setting: for the first time, a set-off agreement with a soon-to-be bankrupt entity was successfully defended against being declared an invalid transaction. The courts of first instance and appeal confirmed the key arguments of the attorneys – who are now members of the ALPERIYA PARTNERS team – that:

• the defendant had no indications of being aware of the debtor’s insolvency;
• the agreement was mutually beneficial, strengthened the positions of both parties, and did not harm the property interests of creditors.

As a result, assets totaling 10 million rubles were preserved for the client.

The outcome not only demonstrated that it is possible to defend the good faith of transaction participants even in a highly contentious bankruptcy dispute. The practical value of the case lies in the fact that it initiated the development of positive case law and can serve as guidance for protecting similar agreements in the future.