Restructuring contractual relations between a major manufacturer of agricultural machinery and one of its dealers

Within the framework of the security measures the client was advised to apply to its relationship with the dealer, the practice’s lawyers developed a mechanism to transfer overdue accounts payable by the dealer to a dealer whose financial standing gives no cause for criticism. Such transfer is performed using instruments only recently adopted by Russian legislation: an option agreement and a framework agreement. The task was particularly difficult because the mechanisms in question are new in Russian legislation and although no case law existed in terms of applying them, our lawyers were required to ensure that the suggested solutions were 100% effective with remedies available in order to mitigate the related risks.