ALEXANDROV&PARTNERS associates elaborated a mechanism for obtaining by a third party of immovable property into ownership, which immovable property is subject to mortgage agreement and owned by a legal entity undergoing bankruptcy proceedings.
Company’s client, who is not a party to the bankruptcy proceedings related to the owner of the property expressed a wish to buy out non-residential buildings out-of-auctions during the bankruptcy proceedings.
In order to reach its goal, the client was offered either it assign its claim to collateral under mortgage agreement and replace the creditor in the bankruptcy proceedings or to participate in debtor’s rehabilitation as an investor with establishment in the rehabilitation plan of investor’s right to buy out debtor’s specific property on account of discharge of secured creditor’s claims.
The legal position was developed by Senior Associate, Kseniya Shein. The project was led by Dmytro Alexandrov, Managing Partner of ALEXANDROV&PARTNERS.