10.2. Manageable Insolvency: What should the Minor Creditor do?

Friday, May 21
11:30 - 13:00

Channel 2
Live Stream

Track: 10. Insolvency
Discussion session


The concept of 'manageable insolvency' is unfortunately not something unusual for Russian insolvency law and is increasingly being used to denote abuse of rights in insolvency proceedings by those who have the power to determine the fate of a debtor at a creditors' meeting. This is made possible, in part, by the fact that Russian insolvency law de jure is extremely pro-creditor: it is up to creditors to decide what procedure will be imposed on the debtor, who will be the trustee in insolvency and how the imposed procedure will be conducted. This has led to fierce battles to win a majority of votes at creditors' meetings. On the other hand, it was the abuse of 'manageable insolvency' that became a serious driving force in the development of Russian insolvency law. In particular, such an institution as subordination of creditors' claims in insolvency emerged in Russian insolvency law, as these proceedings were often de facto controlled by the debtor or its affiliated persons under formally pro-creditor regulations.

The panel will discuss how Russian insolvency law is changing in the fight against manageable insolvency, how minority creditors can already be protected today, and what changes are needed to eliminate the negative connotations of the term 'manageable insolvency'.

The discussion session invites to discuss the following questions:

  1. Cram Down - a radical solution to the problem of manageable insolvency? What happens if majority creditors are deprived of unlimited power? Can a court effectively evaluate the economics of a business? How does foreign practice answer these questions? What protections are available to minority creditors abroad?
  2. The Russian subordination model - how to prevent a debtor from controlling the procedure? Retroactive judicial assessment of business efficiency and what does subordination 'the Russian way' have to do with it
  3. Can creditors' claims be redeemed? Which is better - repayment of debt or maintaining control?
  4. How to prevent abuses by a controlling creditor in a tendering proceeding?
  5. Is it possible for a controlling creditor to abuse the right without the help of a bankruptcy trustee. What will be an effective counter to collusion? Will a rating-based system for appointing a receiver be effective?

All of these questions will be discussed by the panelists - insolvency experts and practitioners from Russia and abroad.


Rustem Miftahutdinov

Associate Professor of the Department of Commercial Law and Procedure at the Russian School of Private Law of S.S. Alekseev Private Law Research Centre under the President of the Russian Federation, Ph., Founder and Supervisory Board Member of the Insolvency Club


Alexey Abramov

Partner, KPMG Law. KPMG in the CIS

Alex Bardin

Attorney-at-Law, CMS Switzerland

Paul Fussenegger

Attorney, Independent Law Office, Rechtsanwalt

Dmitry Kochergin

Head of the Legal support Methodology Department of the Office for Legal support for Corporate Lending and Settlements Unit, PJSC CREDIT BANK OF MOSCOW

Maxim Strizhak

Attorney, Managing partner of Independent Legal Group «Strizhak & Partners»

Dmitry Yakushev

Attorney, Andrey Gorodissky and Partners

Tatyana Zhandarova

Head of Legal support for Corporate Lending and Settlements Unit, PJSC CREDIT BANK OF MOSCOW

* The Programme may be subject to change