16 02 / 18

On February 15, 2018, the Legal Group PARADIGMA successfully presented the interests of the holding company of the international financial group at a meeting of creditors on the issue of restructuring of debt obligations of about 1 billion USD.

The lawyers of PARADIGMA were tasked with minimizing possible negative consequences, offering creditors the most optimal restructuring plan, preventing bankruptcy of the group and reducing license risks for a large bank that is part of the group.

 In the project's boundaries the lawyers of PARADIGMA successfully implemented:

 development of the procedure for converting the debt obligations of the holding company into company shares ("debt restructuring") and representing the interests of the group (and its subsidiaries) in more than 30 court cases in the territory of the Russian Federation, Cyprus, Latvia and the United Kingdom;             

 taking the negotiations on behalf of holding company of the financial group, as well as its subsidiaries with the company's creditors, financial experts involved in restructuring the debt;

 preparation of current legal documents on the law of the Russian Federation, England and Wales, Latvia, Cyprus;

 organization and holding of a meeting of creditors of a financial group.

The uniqueness of the project lies in the fact that it is carried out at the junction of different legal systems: Anglo-American (Great Britain, Cyprus) and continental (Russian Federation, Latvia). Lawyers of the company successfully used norms of corporate, banking, civil law of Russia and England, taking into account the existing conflicts of law in this project.

The procedure of debt restructuring, implemented in Cyprus, is new for the Cyprus legislation and so far has no analogue in the Russian Federation. In case of successful implementation of the project, a precedent event will be recognition of forced conversion of debt of creditors (whose claims are subordinate to the the Russian Federation) in the shares of the company.

Coordination and consolidation of the actions of the international working group by lawyers PARADIGMA allowed to find the most optimal solution to the problem - approval of the proposed restructuring plan in several jurisdictions, which will allow maintaining the stability of the holding company and the bank that is part of the group.