Collecting bad debt on behalf of a Latvian bank using a bankruptcy mechanism

Pepeliaev Group’s lawyers protected the interests of a major Latvian bank within the framework of a comprehensive project to collect bad debt. Having initiated bankruptcy proceedings of borrowing companies and the bank’s sureties, we succeeded in: including claims of USD 8 million in the register of creditors; cancelling the decision of the arbitration tribunal on which an affiliated creditor’s claim was based; and in preventing the withdrawal of the debtor’s key assets that had been pledged as security for its loan obligations. We managed to initiate the proceedings under a simplified procedure based on an application filed by a foreign bank with respect to persons other than the principal debtors. This serves as grounds for these projects to be viewed as important and setting a precedent in terms of judicial decisions resulting from a check of whether bankruptcy applications are grounded.